FDIC Proposes New Signage and Advertising Rules

The FDIC proposed to (i) modernize sign and advertising requirements to account for banks doing business with customers not physically in a branch and (ii) clarify regulations regarding the advertisement of deposit insurance coverage, particularly as banks may offer non-insured products, such as those involving digital assets.

The proposal would amend FDIC Rule 328 ("Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC'S Name or Logo") to apply to Insured Depository Institutions ("IDIs") that are required to display the FDIC's "symbol" and a statement as to the availability of deposits insurance. Where the IDI offers both insured and non-insured deposit products at the same location, the proposal would require the bank to separate the physical locations where those transactions take place, and have signage clearly indicating the portions of the branch where insured and where non-insured products are offered. Banks would be required to separate such locations.

The FDIC also proposed applying similar requirements to online sites.

Comments on the proposal are due by February 21, 2023.