Compliance Date Extension: Part 328, Subpart A Amendments to FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo Rule

Summary:

The Federal Deposit Insurance Corporation is extending the compliance date for amendments to part 328 subpart A of its regulations to modernize the rules governing use of the official FDIC sign and insured depository institutions’ (IDIs’) advertising statements from January 1, 2025, to May 1, 2025. This extension will provide additional opportunity for IDIs to establish processes and systems, and make technological updates, necessary to implement the new regulatory requirements under subpart A. The compliance date for amendments to part 328, subpart B, relating to misrepresentations of deposit insurance, remains January 1, 2025. 

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

Highlights:

• On December 20, 2023, the FDIC adopted a final rule entitled “FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo,” which, among other things, amended the FDIC’s sign and advertising requirements for IDIs under part 328 subpart A.  The final rule is intended to modernize the regulations to enable consumers to better understand when they are interacting with a bank and when their funds are protected by the FDIC’s deposit insurance coverage. The amendments made by the final rule took effect on April 1, 2024; however full compliance with the amendments was extended to January 1, 2025.
• Based upon feedback from IDIs and other banking industry participants, the FDIC understands that some IDIs would find it beneficial to have additional time beyond the January 1, 2025, compliance date to implement the new regulatory requirements under subpart A.  In particular, some IDIs have reported they continue to update online systems and platforms, and have requested additional time to meet the new requirements under subpart A.
• To provide additional opportunity for IDIs to put in place processes and systems, and make technological updates, the FDIC is extending the compliance date for amendments to subpart A from January 1, 2025, to May 1, 2025.  This extension would apply to the provisions requiring: (1) the use of the FDIC official sign, official digital sign, and other signs differentiating deposits and non-deposit products across all banking channels, including physical premises, automated teller machines (ATMs) and digital channels, and (2) the establishment and maintenance of written policies and procedures to achieve compliance with Part 328.  
• In July and August 2024, the FDIC published Q&As addressing the most frequently asked questions that the FDIC has received from final rule stakeholders. 
• In order to facilitate effective compliance by the May 1, 2025 compliance date, staff would seek to make any additional “Questions and Answers” available by November 30, 2024.       
• In addition, the FDIC has provided additional resources to further assist stakeholders with implementation, including presentation slides from banker webinars on part 328. More information about part 328 can be found in the Press Release, Financial Institution Letter (FIL) 65-2023, and the Final Rule (PDF).
• The compliance date for amendments to subpart B made in the final rule remains January 1, 2025. Subpart B of the final rule addresses prohibiting any person from misusing the name or logo of the FDIC, engaging in false advertising, and making knowing misrepresentations about deposit insurance. The FDIC expects full compliance with subpart B after January 1, 2025.