FDIC Issues Final Rule on Official Signs and Advertising Requirements

The FDIC recently issued a final rule amending its regulations governing the use of the official FDIC sign and insured depository institutions’ (IDIs’) advertising statements.  In general, the final rule amends the regulations governing the display of the official FDIC sign in branches to also apply to areas where consumers have access to or transact with deposits, prohibits the display of the sign where non-deposit products are offered, and where non-deposits are offered, requires signage indicating the non-deposits are not insured by the FDIC.  Additionally, the final rule establishes requirements for the display of the FDIC official digital sign on bank websites, mobile applications, and certain ATMs, with disclosure requirements for non-deposit products.  Moreover, the final rule requires the use of disclosures differentiating deposits and non-deposit products access across all banking channels.

The final rule also amends the FDIC’s regulations regarding misrepresentations of deposit insurance coverage by providing several new examples of misleading information.

The final rule requires IDIs to establish and maintain policies and procedures addressing compliance with part 328 of the FDIC regulations (Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo).

While the final rule takes effect on April 1, 2024, full compliance with the amendments is extended to January 1, 2025.