This interview with New York Department of Financial Services Superintendent Linda Lacewell covers a wide landscape and underscores how much DFS has grown in reach since its inception. DFS does not have oversight over broker-dealers or investment advisers, but regulatory coordination has continued to grow in recent years, both among state regulators and between state regulators and federal regulators. Therefore, drawing from all regulatory perspectives can be helpful for the asset manager and brokerage industries as we look to the future of both internal inspections at firms and remote supervision and examinations by regulators.
We were already talking internally [at NY DFS] about how to modernize our examination system so we can get to a place of virtual supervision, where the data is coming in continuously. We ought to be able to see the data with analytics and visuals and have an ability to risk-rate on an ongoing basis to focus our energies where they need to be. We had also just done a pilot program on remote work for our state employees. Then we have this pandemic, and it becomes abundantly clear that the need to do the job remains, but now you've got to do it differently. Everything has been accelerated. The need to execute on these priorities of innovation and technology, virtual supervision and transforming ourselves internally to have that external impact has really advanced tremendously.