The Federal Deposit Insurance Corporation just released a proposal to relax its regulations that require banks to display FDIC and non-deposit signage when promoting their services.
In 2023, the FDIC adopted a rule that expanded the channels in which FDIC and other signage was required. Although the compliance with the rule was not required until January 1, 2025, after industry concerns were raised about difficulties in complying with the new requirements, the FDIC ultimately delayed the compliance date until March 1, 2026.
Here's a recap of the key proposed changes.
First, the FDIC is proposing to give banks additional flexibility when displaying the FDIC official sign. Although the FDIC is still planning to require standard color schemes for the signs, the FDIC wants to give banks flexibility on the specific colors, fonts, and and font sizes used. The FDIC is also proposing to allow banks to "wrap" the text of the FDIC official sign in digital channels to address space constraints.
Second, the FDIC is proposing to limit where the banks are required to place the FDIC official sign, in order to "more appropriately focus the display of the FDIC official sign on digital deposit-taking channel pages and screens that are most relevant for consumers." The new rule would require the signage on the login page and on a page where consumers are essentially first interacting with their deposit account. The FDIC is also proposing to limit where disclosures related to non-insured products (i.e., not insured by the FDIC, may lose value, etc.) are required. Specifically, the new rule would require the disclosure "only on pages and screens that are primarily dedicated to one ore more non-deposit products." The proposed rule also provides guidance on how to satisfy the FDIC's "clear, continuous, and conspicuous display" requirement as well as the one-time notification requirement (when accessing non-deposit products through a bank's deposit-taking channel).
Third, the FDIC is proposing to amend its rules to provide banks with additional flexibility when displaying the FDIC signage on ATMs and similar devices. Here, the FDIC is proposing to require only that the signage be disclosed on the initial screen that is displayed before a customer inserts a debit card or other credentials to access the device. The FDIC explained, "This simplified requirement would continue to help ensure that consumers are informed when consumers are doing business with an [insured depository institution], while providing greater certainty for IDIs as to which ATM pages or screens would require display of the FDIC official digital sign." The new rule would also provide additional flexibility when physical signage may be used instead and to limit when non-deposit disclosures are required.
If the rule changes are approved, the new compliance date would be January 1, 2027.
The FDIC will be accepting public comments on the proposed rule for 60 days from the date that the proposal is published in the Federal Register.
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