The New York Department of Financial Services has issued a complaint in a federal court to challenge the US Office of the Comptroller of the Currency's 'reckless folly' in granting special-purpose national bank charters to financial technology companies.

The complaint seeks to stop the OCC from granting charters to institutions subject to New York State law that provide financial services to HNW customers in New York consumers, The court document "challenges the decision of the OCC to grant special-purpose national bank charters to a boundless class of undefined fintech companies. These newly forged institutions will seek to provide financial services in connection with an unidentified and sweeping array of commercial ventures never before authorised or regulated by the OCC.

"The...decision is lawless, ill-conceived and destabilising of financial markets that are properly and most effectively regulated by New York State. It also puts New York financial consumers at great risk of exploitation by federally-chartered entities improperly insulated from New York law. The OCC's reckless folly should be stopped."

The New York regulator recently supported a civil case that the Conference of State Banking Supervisors has been making against the OCC.