Allows the department of financial services to impose penalties on unlawfully unlicensed entities

2025 Regular Session Introduced by Alex Bores and 3 co-sponsors

The bill gives DFS authority to sanction entities that operate in financial services without the required licenses.

PRINT NUMBER 1222A

Overview and Purpose

Bill A 1222, titled “Allows the department of financial services to impose penalties on unlawfully unlicensed entities,” seeks to strengthen enforcement against entities operating in the financial services space without the necessary licenses. The bill would grant the Department of Financial Services (DFS) explicit authority to impose penalties on such unlawfully unlicensed entities.

Key Provisions (High-Level)

Authorizes DFS to impose penalties on entities that operate without required licenses.

Establishes enforcement mechanisms and procedures for identifying, notifying, and penalizing unlawful unlicensed activity (specific penalties, fine amounts, and procedures would be set in the bill text).

Aims to deter unlicensed activity and improve regulatory compliance within the financial services sector.

The text likely includes definitions and scope regarding what constitutes “unlawfully unlicensed” activity and which DFS-regulated activities or licenses are covered (the exact definitions and covered activities would appear in the bill’s text).

Note: The exact penalty amounts, enforcement steps (e.g., notices of violation, hearings), and any exemptions or carve-outs are not specified in the provided material and would be detailed in the enacted text of A1222A.

Who Is Affected

The Department of Financial Services (DFS) would gain explicit authority to administer penalties.

Entities operating in financial services without proper licensing (unlicensed entities) would be directly subject to penalties.

Licensed entities and consumers could be impacted indirectly through a higher level of regulatory oversight and potential changes in market behavior as unlawful operators are deterred.

Industry stakeholders and legal/compliance professionals would need to ensure licensing compliance to avoid penalties.

Procedural and Timeline Details

Introduced: January 9, 2025.

Legislative Action: Referred to the Banks committee on January 9, 2025.

Subsequent Action: Amendments and reconvening to Banks noted on May 20, 2025.

Status: Print Number 1222A as of May 20, 2025.

Related/Companion Measures: S 1290 (companion bill in the Senate); A 7770 from a prior session.

Sponsors: Primary sponsor Alex Bores; cosponsors Nily Rozic, Chris Burdick, and Clyde Vanel.

Context and Next Steps

The bill aligns with broader enforcement themes by giving DFS additional tools to sanction unlicensed activity.

For a complete understanding, review the full text of A1222A to confirm the exact penalties, procedures, definitions, exemptions, and any regulatory timelines.

Related bills and companion measures (S 1290; A 7770) may provide additional context or alternative language.

If you’d like, I can incorporate the precise statutory language once the text is available and highlight any differences across the introduced and amended versions.

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