Questions and Answers Regarding FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo

Summary:

The Federal Deposit Insurance Corporation (FDIC) recently published a series of Questions and Answers (Q&As) related to the final rule governing FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo (part 328). The Q&As are a collection of the most frequently asked questions that the FDIC has received to date from stakeholders, including banks, trade associations, technology companies, vendors, and other entities. The Q&As provide clarifying information on the final rule to support stakeholders in the implementation of part 328.

The Q&Ascan be found on the FDIC's website.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-insured financial institutions.

Highlights:

• The final rule issued in December 2023 amends part 328 to modernize the regulations governing the use of the official FDIC sign and advertising statements, as well as rules related to false advertising and misrepresentations regarding deposit insurance coverage, and misuse of the FDIC's name or logo.
• The final rule is intended to enable consumers to better understand when they are conducting business with an IDI and when their funds are protected by the FDIC's deposit insurance coverage. The rule became effective on April 1, 2024 and has a compliance date of January 1, 2025.
• The Q&As cover key implementation topics that include, for example, the placement and display of the official digital sign and non-deposit sign, use of the advertising statement on various deposit-taking channels on websites, mobile apps, ATMs, and social media, as well as information on technical assistance support, such as where to obtain downloadable versions of the official digital sign.
• The FDIC published the first set of Q&As in July 2024 and added additional Q&As in August 2024. The FDIC will update the Q&As periodically on the FDIC's website, as needed.
• The FDIC is making additional resources available to further assist stakeholders with implementation, including presentation slides from banker webinarson part 328. More information about part 328 can be found in the Press Release, Financial Institution Letter (FIL) 65-2023, and the Final Rule.