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Action requiredNew York Department of Financial ServicesNYJun 23, 2026

New York DFS proposes permanent risk-based capital treatment for certain fixed-income ETFs

Published in the June 10, 2026 New York State Register, DFS proposed a Risk-Based Capital rule affecting insurer treatment of certain exchange-traded funds composed of fixed-income securities, cash, and cash equivalents. The proposal would remove the January 1, 2027 sunset date and make the treatment permanent if the ETF meets the rule's criteria.

Published in the June 10, 2026 New York State Register, DFS proposed a Risk-Based Capital rule affecting insurer treatment of certain exchange-traded funds composed of fixed-income securities, cash, and cash equivalents. The proposal would remove the January 1, 2027 sunset date and make the treatment permanent if the ETF meets the rule's criteria.

What changed

DFS proposed eliminating the scheduled 2027 sunset date for a specific RBC treatment applicable to qualifying fixed-income ETF holdings.

Compliance perspective

Insurers and affected investment teams should review portfolio classifications and RBC assumptions tied to fixed-income ETF holdings. Comment opportunities remain open through the standard 60-day period noted in the State Register.

Key date

Effective date: June 10, 2026.

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