The FDIC today proposed a rule implementing its authority to prohibit misrepresentations about deposit insurance or misusing the FDIC’s name or logo. The proposed rule would also create a central point of contact where the public could report or make inquiries about potential violations.
The Federal Deposit Insurance Act already prohibits misuse of the FDIC’s name or logo, the FDIC said, adding that the proposed rule will “further clarify its procedures for identifying, investigating, and where necessary taking formal and informal action to address potential violations of Section 18(a)(4).”
The FDIC said the rule is in response to an increase of the number of incidents where agency’s name or logo has been misused to claim a product is FDIC-insured. Comments on the proposed rule are due 60 days after it is published in the Federal Register.