FDIC extends compliance deadline

The FDIC just amended a May 2025 compliance deadline, giving institutions until next year to comply with certain aspects of new requirements.

The move relates to the FDIC’s 2023 final rule to modernize their advertising of membership regulation. That rule amended provisions surrounding the use of the official FDIC sign, advertising statements, digital signage and prohibitions on misrepresenting FDIC insurance coverage. 

Compliance extensions: What’s changing

The 2023 amendment initially had an effective date of April 1, 2024, and a compliance date of January 1, 2025. However, since its issuance, the FDIC has twice pushed back compliance dates.

These additional delays provide more time for insured depository institutions (IDIs) to comply with certain requirements. 

It is important for institutions to understand what the two delays pertain to so that they can work within new timeframes where permitted.

• 2024 amendment: This delay extended the compliance date for subpart A amendments to May 1, 2025. At a high level, the subpart A provisions include official signage requirements, official advertising statement requirements, implementation of a new official digital sign, and the establishment of written policies and procedures to support compliance.
• March 2025 amendment: This delay extends the compliance date for the subpart A amendments in 12 CFR 328.4 and 12 CFR 328.5 to March 1, 2026. The provisions in 12 CFR 328.4 govern signage for IDIs’ ATMs or like devices that receive deposits for the IDI. The provisions in 12 CFR 328.5 govern signage for digital deposit-taking channels, including an IDI’s website and mobile applications.

Compliance dates

Signage requirements

IDIs will need to understand the provisions related to official signage. The FDIC has updated provisions related to the official sign in an institution’s physical premises where consumers have access to or transact with deposits. Provisions also require non-deposit product signage in areas where non-deposit products are sold.

Signage for IDI ATMs or similar devices where deposits are accepted will need to comply with new signage requirements, which vary depending on whether non-deposit products are offered at the ATM or similar devices.

Those that don’t offer non-deposit products at ATMs and like devices have the option of using the physical official sign or the new FDIC official digital sign. Those that offer non-deposit products at ATMs and like devices must use the new FDIC official digital sign.

Signage for an IDI’s digital depositing-taking channels will cover an institution’s website and web-based or mobile applications that take deposits electronically or provide access to deposits. In these areas, the new FDIC official digital sign will be required. These provisions also address situations where the deposit-taking channel offers both access to deposits and non-deposit products.

Advertising statements

The FDIC’s amended provisions for use of the official advertising statement retain the same definition of “advertisement” and continue to require that commercial messages (unless exempted) that are designed to attract public attention or patronage reflect the official advertisement statement or an optional short title and symbol. A new optional short title of “FDIC-Insured” has been added to the regulation.

Written policies and procedures

Another important component of the amendments is that IDIs must establish written policies and procedures to achieve compliance. The FDIC provides some flexibility here by stating that such documentation should be commensurate with the nature, size, complexity, scope and potential risk of an institution’s deposit-taking activities.

Tips for meeting compliance requirements

• Make sure your compliance management system (CMS) has these rule changes on its radar.
• Involve the appropriate personnel in establishing policies and procedures.
• Ensure physical premises signs are implemented according to requirements.
• Work with your web design team, ATM support, third-party deposit platform provider, and app or mobile banking support teams to implement official digital sign requirements as needed.

How Wipfli can help

Our risk advisory team is ready to help your financial institution adapt to changing requirements and new challenges. We understand your complex regulatory compliance concerns. Contact us to learn more.