N.Y.Regulation
New York DFS makes permanent bond treatment of eligible ETF shares in risk-based capital rules
The New York Department of Financial Services amended its risk-based capital regulation to permanently treat shares of an eligible exchange traded fund as bonds, eliminating the January 1, 2027 sunset date. Insurers had supported removing the sunset. The final rule took effect September 23, 2026 with no changes from the June proposal.
Text (New York State Register) →
Key points
- DFS amended 11 NYCRR Part 77 to eliminate the 1/1/27 sunset date, permanently treating eligible ETF shares as bonds for risk-based capital.New York State Register
- The rule was filed September 8, 2026 and took effect September 23, 2026; the final text matches the June 10 proposal.New York State Register
- A life insurer trade group, an asset manager trade group, and four ETF sponsors all supported removing the sunset.New York State Register
- DFS declined requests to cut the $1 billion AUM eligibility threshold to $100 million or to cover actively managed ETFs.New York State Register
- The amendment took effect on September 23, 2026, the date the notice of adoption appeared in the State Register.New York State Register
Sources1 article across 1 outlet
New York State Register
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RegulationN.Y.NY DFS Final Rule: Risk-Based Capital - Permanent Bond Treatment of Eligible ETF Shares (2026)InsuranceRegulatoryFor practitionersFor governance