I'm not sure if anyone was ready for it to come up out
of nowhere as it did the law obviously passed a
while back. So we already knew that the rules were coming.
There has been the opportunity to comment on the proposed rules
and originally when that proposal was
put up people the feedback that the Department of
Financial Services got there was
a lot and they recognized them and said, hey we got
to go back and really redo this whole thing. And I think
people kind of got the feeling that there was going to be a lot of
back and forth.
Just like what had happened in California where there
was kind of back and forth for maybe four or five years
over what the final rules are going to be New York
kind of eliminated all of that and really
just got right to the point our confident that
they have it right now. Yeah, and they put
the rules up on their site on or
they published it in the state Register. I should say they published
it the rules the final rules in the state Register on
February 1st, but they actually filed
them on January 12th. So the rules
were technically finalized on January 12th, but they weren't made
available to the public in the state Register until February
1st. And so now we have them. Yeah, and
it's the new reality if you're wondering
Wait a minute. What do I need to comply with these new
rules? Because everyone needs time to yeah to figure out
how they're going to move forward with it get ready to adjust and
adapt and my understanding is because because I'm
not an attorney is that the rules go into effect six
months from the date that they're published in
the state Register which would put it
as around August of 2023. Yeah,
for one people would have to comply that's my understanding of
it. Obviously if you're out there check with an attorney.
Yeah. It's interesting because so far we know that it's a 53 page
rule book. That's gonna dictate. Well covered parties will
be required to do and overall the department said
that it received just 21 comments on the proposed
revised rule.
So 21 comments. That's it. Yeah,
I was a little surprised when we read that when I
read that because I thought it would be more common and more people
kind of chiming in but they just had received 21 comments
and the department has
cons.
Every comment received and has made several revisions to
the rule book. And again,
this is the final version of that and I
think if you are interested in reading more about it, we have
that part of the you know, we a link
to that actual rule book on on the article on
our website and it's 53
pages. I mean, there's a lot to go over. I
mean, I think the best recommendation is to sit
down with your attorney and kind of go over
what exactly it's gonna be required for you if you're
doing business in New York May I add that you
should forgive your attorney. If you're not currently an expert
at all 53 Pages because the rules
were just finalized. So I imagine
they need time to study what the final rules are you before
they're able to you know, give you advice as
to how to move forward. Yeah you well,
you know, I'd haven't
read all 53
is on my own but I did read there's this
a addendum attached to the rules where the
DFS kind of
discusses the commentary it received and how
it decided to proceed and one of the comments they had received out
of the only 21 was that Brokers should not
be covered.
By the rules and they've actually
said too bad they are. Yeah and
what capacity again that's for an attorney
to figure out but this will have you know wide reaching
effects and I imagine will be similar
to the rules in California overall. Yeah,
you know, that's how the law itself was written. It was kind of modeled after the
law in California. So I anticipate that it would
be, you know, very similar in terms of what will be
required going forward. Yeah. I think one thing also thinking to
consideration is if you actually go online and you read these pages
and this is just something I'm saying
a lot is definitely don't just read
it and assume, you know, what what you can
do or what to do because there's a lot of information. I have some of
the points of what it goes through but there's just so much
and it's so specific that I think you
know, if you the best
thing is to hire an attorney and sit down and go over with it
go over it with them specifically because
um, just you know, it's it's a lot of information. It's very
specific and I think we've said it
before it's like it's very specific to New York. If you're doing business in New
York and it's gonna look very different from what California has
and what other states have because it's
just a different Beast Within itself.
So
Yeah anything that's gonna say everybody.
Just that New York is the major Metropolitan hub
for the small business finance industry,
right? That's undeniable. And before when
the California rules went into effect. There
was a segment of people in the
New York Market that were deciding whether or not they should proceed
in California as if it were some foreign market
that was optional. Yeah, everyone recognized that
California with the biggest state in the country by
population. And that were there was a tremendous amount
of business to be gained by continuing to do
business in the state. Yeah, but still is almost
like they were there was a remoteness or Detachment to it because many
of the company many of the companies in the industry are
in New York or even in Florida too, right? But
here we are now on the home turf of
the industry and if you decide to say,
hey, I'm gonna sit the state out. It might be a little weird to
to not be able to help a customer
down the street right? Because if you're based on
Long Island, you're based in Brooklyn, you're based in the city and you have that
local business. It says hey I hear what you do. Can you
help me out? You know, can you help me get some funding? It would
be really weird to be like, oh sorry can't do business.
Yeah here right, I think.
For anyone who had not
moved forward in California. This will be the impetus
for them to be compliant with disclosure laws
because I don't think new york-based funding companies are
going to want to miss out on funding businesses
in New York. That's my personal opinion.