I am reading about the new FDIC membership changes that are effective April 1, 2024. I came across the statement below that is making me think this does not apply to my bank as we have assets of about $536 million.

Statement of Applicability: The contents of, and material referenced in, this FIL do not apply to FDIC-insured and/or FDIC-supervised institutions with less than $10 billion in total consolidated assets.

Is this why this topic is not being talked about a lot because not all banks are going to fit into this category?

Where are you seeing that?

https://www.fdic.gov/news/financial-institution-letters/2023/fil23065.html

Or are you talking about something else?

rclarey, I see that your link is dated December 2023 and my link is dated November 2023...bummer.

That link is related to proposed new safety and soundness regulations and has nothing to do with FDIC membership.

rclarey, I titled the link incorrectly and should have labled it as FDIC Official Signs and Advertising Requirements...glad to know that the rule does apply to a bank our size.

Just for clarity's sake, the updated FDIC regulation on Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC's Name or Logo (12 CFR Part 328), applies to all FDIC-insured financial institutions and all parties who state, suggest or imply that assets they hold are FDIC insured. Changes to the regulation will become effective April 1, 2024, with compliance required by January 1, 2025.

The changes may affect FDIC signage placement in FI offices, do require "not/not/may" signage in areas of offices where non-deposit products are offered, and codify and change rules on disclosing FDIC membership on bank websites, online baking portals and mobile apps, and on ATMs and similar machines.

John, I do see the mandatory compliance date of January 1, 2025 in the FDIC's Press Release dated December 20, 2023. Thank you for your help.

Page 13 of of the Final Rule

" The amendments made by this final rule will take effect on April 1, 2024. However, full compliance with the amendments made by this final rule is extended to January 1, 2025."

Where do we get the new FDIC digital logo?

Thanks

Other than it being included in this release, I have not located a source: https://www.fdic.gov/news/press-releases/2023/pr23110.html

In the supplementary information published with the revised rule, the FDIC included this paragraph (you can find it HERE):

"In response to comments related to technical issues and potential costs, the FDIC recognizes the commenters' concerns. But several comments also highlighted the importance and value of clear and conspicuous signage to prevent consumer confusion. The FDIC believes that the benefits of the FDIC official digital sign outweigh the concerns about costs. To alleviate those concerns the FDIC is reviewing options to provide IDIs with technical assistance or guidance to assist in implementing the FDIC official digital sign requirements. The FDIC will also review options to provide an image of the FDIC official digital sign to IDIs upon request at no charge, similar to the process by which the FDIC provides banks with physical official signs."

When it comes to including the official digital sign on pages of banking apps, it will be difficult, if not impossible, to include the entire thing on one line as it is displayed in the regulation (even the official digital symbol is described as including the letters FDIC and the single line of text the follows it), since most banking apps are portrait-oriented to accommodate the way customers normally hold their mobile phones. Some of the apps don't even allow themselves to be auto-rotated by holding a phone horizontally. I have received no response to a comment on that fact directed to one of the contact individuals identified in the opening paragraphs of the Federal Register document.

Anyone have any samples of policy & procedures as mentioned in the FIL? And I feel like I am confusing myself, but should the new digital sign be on all webpages that discuss deposit accounts or only on the pages that will accept deposits like online account opening and mobile deposits? And it should be near the top or near the bank's name? We have always been under the mindset that when mentioning the bank's name state member FDIC but that should change now correct. If we are advertising a loan product Member FDIC should not be mentioned?

Live 2 Comply, I've been struggling with the Policies and Procedures requirement as well. I think I'm just going to sit down and try to muddle through and hope I cover everything they want covered. Fingers crossed!

1. The new official digital sign should be on the initial or homepage of the bank's website and mobile banking app, any login page for the website or banking app, and any page where the customer may transact with deposits (transfers; deposits).[328.5(d)]. If a webpage includes ads for deposit products, include it there, too (because of the ads).

1a. If you advertise any non-deposit products on your website or mobile app, keep them clearly separate from ads for deposit products. A separate page is one way to go. Include the non-deposit product statement ("Not, not, may").

2. It should be near the bank's name at the top of the page. That suggests that the bank's name should also appear at the top of each of those pages. [328.5(f)]

3. The official digital sign takes the place of "Member FDIC" on websites and banking apps (and in some cases, ATMs)

4. There is no problem advertising a loan product on the same page that the official digital sign appears. Loan products are excluded from the definition of "non-deposit product" for the purpose of this regulation. [328.1 - Definitions]

You have until January 1, 2025, to comply.

Just wondering.... how is this any different than what we are doing today?

1a. If you advertise any non-deposit products on your website or mobile app, keep them clearly separate from ads for deposit products. A separate page is one way to go. Include the non-deposit product statement ("Not, not, may").

Part of the old rules is carried forward into the new rules. Remember that all of Part A was re-issued, and we get a mix of the old and the new.

And I can't assume what you currently do. But you are correct, there is nothing new in my item 1a. But I'll bet there is a bank out there that isn't doing it that way.

Got it. The snip below is from 328.3(e). It's very clear that "Member FDIC" must be segregated, but I am curious about a "mixed advertisement" as described in (ii)(4). For example, on web pages, can you have the usual disclosures (i.e. Member FDIC, Privacy Policy, etc.) in the banner at the bottom on a page that is advertising investment/NDIP products?

Section 328.3
(e) Restrictions on using the official advertising statement when advertising non-deposit products (1) Definitions—

(i) Non-deposit product. As used in this subpart, the term “non-deposit product” shall include, but is not limited to, insurance products, annuities, mutual funds, and securities. For purposes of this definition, a credit product is not a non-deposit product.

(ii) Hybrid product. As used in this subpart, the term “hybrid product” shall mean a product or service that has both deposit product features and non-deposit product features. A sweep account is an example of a hybrid product.

(2) Non-deposit product advertisements. Except as provided in §328.3(e)(4), an insured depository institution shall not include the official advertising statement, or any other statement or symbol which implies or suggests the existence of Federal deposit insurance, in any advertisement relating solely to non-deposit products.

(3) Hybrid product advertisements. Except as provided in §328.3(e)(4), an insured depository institution shall not include the official advertising statement, or any other statement or symbol which implies or suggests the existence of federal deposit insurance, in any advertisement relating solely to hybrid products.

(4) Mixed advertisements. In advertisements containing information about both insured deposit products and non-deposit products or hybrid products, an insured depository institution shall clearly segregate the official advertising statement or any similar statement from that portion of the advertisement that relates to the non-deposit products.

i must be very slow but what is the noted "NOT / NOT / MAY" i see in posts

Not FDIC insured. Not a government guarantee. May lose value.

ahhahah of course
i'll remove my training badge now

Any thoughts on "mixed advertisements"? My marketing department tells me the banner appears on every webpage and can't be removed.

The snip below is from 328.3(e). It's very clear that "Member FDIC" must be segregated, but I am curious about a "mixed advertisement" as described in (ii)(4). For example, on web pages, can you have the usual disclosures (i.e. Member FDIC, Privacy Policy, etc.) in the banner at the bottom on a page that is advertising investment/NDIP products?

My marketing department tells me the banner appears on every webpage and can't be removed.

I think a lot of banks are going to have to review the structure of their on-line presence if the mention of NDIPs are going to be included.

This is interesting.... I reviewed several websites for banks both big and small. All of them have an investments page with the "NOT, NOT, MAY" disclosure at the bottom, but also have a static banner at the bottom with several bank disclosures, including Member FDIC.

While it seems wrong to me, it's very common. Maybe it will be enforced with the new rules required on January 1, 2025.