On Wednesday, the Federal Deposit Insurance Corporation (FDIC) announced its Board of Directors had adopted a final rule regulating the rules governing the use of the official FDIC signs and advertising statements.
The rule would clarify regulations regarding false advertising, misrepresentation of deposit insurance coverage and misuse of the FDIC name or logo.
“The banking industry and practices have substantially changed since the FDIC official sign and advertising rules were last significantly updated in 2006.” said Chairman Martin Gruenberg. “The revisions extend the certainty and confidence that the FDIC official sign provides at bank branch teller windows to the digital channels through which depositors are increasingly handling their banking needs.”
The regulations cover the use of FDIC official signs and logos to digital channels like bank websites and mobile applications, the agency said. In 2025, banks will be required to display the FDIC official digital sign near the name of the bank on all bank websites and mobile applications, and on certain automated teller machines.
Additionally, the rule finalizes the requirements for displaying the official FDIC sign in bank branches and other physical premises. That rule requires the use of signs to differentiate insured deposits from non-deposit products across banking channels and to make clear that certain financial products are “not insured by the FDIC, are not deposits, and may lose value.”
That rule clarifies regulations regarding misrepresentations of deposit insurance coverage by address scenarios where a person provides information to consumer that may be misleading and may confuse consumers as to if they are doing business with a bank and whether their funds are protects.