Regulatory Alerts2021-05-10 | 2021-08690False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC's Name or Logo
The Federal Deposit Insurance Corporation proposes new regulations to implement Section 18(a)(4) of the Federal Deposit Insurance Act, which prohibits false advertising and misuse of the FDIC's name or logo. The proposed rule establishes specific procedures for identifying, investigating, and enforcing violations, including informal resolutions and formal enforcement actions against any person making misleading representations about deposit insurance. Additionally, the document outlines a public complaint process and directs depositors to resources for verifying insurance coverage to promote transparency and confidence in the banking system.
Share