Regulatory Report
Regulatory Report
What's up
  • [ February 6, 2023 ] Lending standards tighten, even though demand weakens; banks expect snug criteria to continue The Fed
  • [ February 3, 2023 ] 6 banks rated ‘outstanding’ under CRA, 2 ‘needs to improve,’ FDIC reports FDIC
  • [ February 3, 2023 ] FDIC, credit union regulator offer guidance on lower HMDA reporting threshold; expect ‘flexible’ approach FDIC
  • [ February 2, 2023 ] Seven banks receive ‘outstanding’ ratings for CRA performance; none rated less than ‘satisfactory’ OCC
  • [ February 1, 2023 ] ‘Outdated’ IT exam program for banks holds weaknesses, needs improvements, report finds FDIC
HomeFederal financial regulationFDICFDIC issues proposal to codify prohibition of false advertising, misleading representations of deposit insurance

FDIC issues proposal to codify prohibition of false advertising, misleading representations of deposit insurance

May 10, 2021 FDIC 0

A proposed rule to prohibit false advertising or misleading representations of deposit insurance, or using the Federal Deposit Insurance Corp. (FDIC) name or logo in a manner to imply an uninsured product is backed by the FDIC, is out for comment until July 9, according to a Federal Register notice published Monday.

Monday’s proposal, approved for issuance April 21 by notation vote of the FDIC Board, is different from the earlier request for information (RFI) on how the might revise and clarify its official sign and advertising rules related to FDIC deposit insurance. Rather, the proposed rule would describe the process the FDIC will follow in identifying and investigating conduct that may violate section 18(a)(4) of the Federal Deposit Insurance Act; the standards under which such conduct will be evaluated; and the procedures the FDIC will follow when formally and informally enforcing the provisions of section 18(a)(4) of the Federal Deposit Insurance Corporation Act (FDICA).

The agency notes that Section 18(a)(4) of the FDICA prohibits any person from misusing the name or logo of the Federal Deposit Insurance Corporation (FDIC) or from engaging in false advertising or making knowing misrepresentations about deposit insurance.

The agency has noted an increase in the number of incidences “where people or entities have misused the FDIC’s name or logo or have made misrepresentations that would falsely suggest to the public that their products are FDIC-insured.”

Federal Register notice

RR: FDIC reissues RFI on official sign and advertising rules, plans proposed rule addressing misuse of FDIC sign, logo (April 8, 2021)

Related

Today

  • Lending standards tighten, even though demand weakens; banks expect snug criteria to continue

    February 6, 2023 0
    Tighter lending standards, and weaker demand, were reported during the fourth quarter for commercial and industrial (C&I) loans to businesses, while lending standards for households during the same period were tighter or remained the same with weaker demand, a survey [...]

Resources

  • About
  • Get our daily reports
    • Registration
  • Password Reset
  • Reg lookup
  • Profile

Follow @editorregreport

Copyright (c) 2022, RegReport.info; Contact: editor@regreport.info