FDIC proposes amending rules on signage, advertising

The FDIC’s board of directors today approved a notice of proposed rulemaking to amend part 328 of its regulations to modernize the rules governing use of the official FDIC sign and advertising statements and clarify the FDIC’s regulations regarding misrepresentations of deposit insurance coverage. The agency last made major changes to the rules in 2006.

The rule would modernize requirements for display of the FDIC official sign and would require using signs that differentiate insured deposits from nondeposit products across banking channels and disclose to consumers that certain financial products are not “insured by the FDIC, are not deposits, and may lose value.”

In addition, the proposed rule would clarify regulations regarding misrepresentations of deposit insurance coverage by addressing specific scenarios where information to consumers may be misleading or confusing as to whether they are doing business with a bank and if their funds are protected by deposit insurance. The rule would also clarify that FDIC-associated terms or images may not be used in marketing and advertising materials to imply or represent that any uninsured financial product is insured or guaranteed by the FDIC.