FDIC proposal would prohibit misuse of its name or logo

Agency Rule-Making & Guidance FDIC FDI Act Bank Regulatory

On April 22, the FDIC proposed a rule implementing its authority to prohibit “making misrepresentations about deposit insurance or misusing the FDIC’s name or logo.” The proposed rule is intended to promote transparency on the FDIC’s processes for inspecting and enforcing potential breaches of prohibitions under the FDIC Act by “further clarify[ing] [] procedures for identifying, investigating, and where necessary taking formal and informal action to address potential violations of Section 18(a)(4).” Additionally, the proposed rule would establish a primary point of contact for the public to report or inquire about potential violations. The FDIC specified that the proposed rule is in response to the “increasing number of instances where financial services providers or other entities or individuals have misused the FDIC’s name or logo.”

Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register.