WASHINGTON – The Federal Deposit Insurance coverage Company (FDIC) Board of Administrators at present issued for public remark a proposed rule to amend half 328 of its laws to modernize the foundations governing use of the official FDIC signal and promoting statements and make clear the FDIC’s laws concerning misrepresentations of deposit insurance coverage protection.
“The FDIC final made main amendments to the official signal and promoting assertion guidelines in 2006,” mentioned Appearing Chairman Gruenberg. “The revisions are meant to increase the understanding and confidence supplied by the FDIC official signal discovered at financial institution department teller home windows to digital channels, reminiscent of financial institution web sites and cellular purposes, by means of which depositors are more and more dealing with their banking wants.”
Amongst different issues, the rule would modernize necessities for show of the FDIC official signal. The proposed adjustments would additionally require using indicators that differentiate insured deposits from non-deposit merchandise throughout banking channels and speak in confidence to customers that sure monetary merchandise usually are not insured by the FDIC, usually are not deposits, and should lose worth.
As well as, the proposed rule would make clear the FDIC’s laws concerning misrepresentations of deposit insurance coverage protection by addressing particular eventualities the place individuals or entities present data to customers which will be deceptive and confuse customers as as to whether they’re doing enterprise with a financial institution and whether or not their funds are protected by deposit insurance coverage. For instance, the proposed rule would make clear that FDIC-associated phrases or photos is probably not utilized in advertising and marketing and promoting supplies to suggest or symbolize that any uninsured monetary product is insured or assured by the FDIC.
As Appearing Chairman Gruenberg famous, “Subsequent yr, 2023, will mark the ninetieth anniversary of the FDIC. This well timed proposal would carry the understanding, security, and confidence traditionally supplied by the FDIC signal and FDIC insurance coverage to at present’s diversified banking channels, together with digital banking.”