FDIC finalizes rules on official sign, misrepresentations

The FDIC board of directors adopted a final rule to modernize rules governing the use of official FDIC signs and to clarify agency regulations on deposit insurance misrepresentations.

Digital Sign: The final rule authorizes a digital version of the FDIC official sign for digital channels. Beginning 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 ATMs.

Physical Sign: The rule also modernizes requirements for display of the FDIC official sign in physical premises to account for evolving designs of bank branches and other physical bank locations.

Other Requirements: The final rule also:

• Requires the use of signs to differentiate insured deposits from non-deposit products across banking channels and to indicate that certain financial products “are not insured by the FDIC, are not deposits, and may lose value.”

• Clarifies the FDIC’s regulations regarding misrepresentations of deposit insurance coverage by addressing specific scenarios in which entities provide information to consumers that might be misleading.

Deadline: The amendments made by the final rule will take effect on April 1, 2024, with an extended compliance date of Jan. 1, 2025.