Notice of Proposed Rulemaking on FDIC Official Signs, Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo

Summary:

The Federal Deposit Insurance Corporation (FDIC) is inviting comment on a notice of proposed rulemaking to amend regulations governing signage requirements for insured depository institutions’ (IDIs’) digital deposit-taking channels and automated teller machines (ATMs) and like devices. 

The proposal would address implementation issues and sources of potential confusion raised since the FDIC’s adoption of the 2023 final rule amending its sign and advertisement of membership regulations. Through the proposal, the FDIC would provide additional flexibility to IDIs while also enabling 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.

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

Highlights:

• Following discussions with stakeholders, the FDIC determined that requirements under sections 328.4 and 328.5 of the 2023 final rule, governing signage for digital deposit-taking channels and ATMs and like devices, may raise operational challenges for IDIs or result in consumer confusion. To address these concerns, the FDIC is proposing amendments as follows:
  • FDIC Official Digital Sign - provide additional flexibility with respect to the color, font, and size that IDIs may use when displaying the FDIC official digital sign;
  • Digital Deposit-taking Channels - streamline the requirements by (1) eliminating the requirement to display the digital sign on landing pages and pages where a customer can transact with deposits, (2) requiring display of the digital sign on the page where a customer initiates a deposit account opening, (3) narrowing the display of the non-deposit signage to pages primarily dedicated to non-deposit products, and (4) permitting the one-time notification for bank customers related to third-party non-deposit products to automatically disappear after a minimum amount of time; and
  • ATMs and Like Devices - narrow the display of the digital sign and non-deposit signage to the initial screen and initial non-deposit transaction screen, respectively, and permit a wider range of ATMs and like devices to display the physical FDIC official sign rather than the FDIC official digital sign.
• The proposal would set a compliance date of January 1, 2027.
• Comments on the proposal will be accepted for 60 days after publication in the Federal Register.