On July 16, 2024, the FDIC published a Questions and Answers Related to the FDIC’s Part 328 Final Rule page on their website. The rule is effective as of April 1, 2024 with a mandatory compliance date of January 1, 2025.
The FDIC expects to continually update the Q&A as needed.
Like most Q&As, some are obvious, and some are very helpful. The page with the Q&As is not very helpful, so we reproduced the Q&As below as of July 19, 2024, for your use.
We still have some time to plan and implement these changes. Contact TCA at [email protected] or (800) 934-7347 as TCA is A Better Way to move towards compliance.
I. Physical Premises
A. FDIC Official Sign
1. With respect to the display of the physical FDIC official sign, does the rule require the FDIC official sign to be posted at a new accounts desk?
Answer: If a banker at a new accounts desk “usually and normally” receives and processes deposits (e.g., processes a check deposit at the new accounts desk), then the official sign must be posted at the new accounts desk. In a scenario where the banker at the new accounts desk always walks the initial deposit over to the teller line, then the teller is “receiving” the deposit and the official sign posted at the teller window is sufficient; therefore, in that situation, an official sign would not be required at the new accounts desk.
2. Are insured depository institutions (IDIs) required to provide any initial disclosures about FDIC insurance coverage, either orally or in writing, before opening an account?
Answer: No. Part 328 does not require IDIs to provide “initial disclosures” about FDIC coverage before account opening.
3. Is the FDIC official sign required at night drop facilities?
Answer: No. The official sign is required wherever deposits are usually and normally received. FDIC staff does not view that deposits are usually and normally received by the IDI when placed in a night depository.
4. The new FDIC official digital sign is generally required to be displayed in the colors navy blue and black. Does the final rule modify the physical FDIC official sign color requirements?
Answer: No. The final rule does not modify color requirements for the physical FDIC official sign. The rule continues to require use of the standard, in-branch official FDIC sign, which is 7×3 inches in size with black lettering and gold background. Upon request, the FDIC will continue to provide the official sign at no cost to IDIs. As has been the case traditionally, IDIs may, at their expense, procure from commercial suppliers’ signs that vary from the official sign in size, color, or material. An IDI may display signs that vary from the official sign in size, color, or material at any location where display of the official sign is required or permitted. However, any such varied sign that is displayed in locations where display of the official sign is required must not be smaller in size than the official sign, must have the same color for the text and graphics, and include the same content. 12 CFR § 328.3(b)(4).
B. Non-Deposit Signs
1. Is the non-deposit sign required to be displayed in the individual offices within IDIs where non-deposit products are offered?
Answer: Yes. Under 12 CFR § 328.3(c)(2), an IDI must continuously, clearly, and conspicuously display the required non-deposit signage at each location within the premises where non-deposit products are offered. If non-deposit products are offered in individual offices, the non-deposit sign should be visible in those offices.
II. Digital Channels (e.g., Websites or Apps)
A. Placement and Display of Official Digital Sign
1. Are IDIs’ websites considered deposit taking channels for purposes of the digital signage requirements?
Answer: Under Part 328, the FDIC official digital sign must be displayed on “digital deposit taking channels,” which includes IDIs’ “websites and web-based or mobile applications that offer the ability to make deposits electronically and provide access to deposits at insured depository institutions.” 12 CFR § 328.5(a). If an IDI’s website is purely informational, with no ability to make deposits or access deposits, it would not be a digital deposit-taking channel.
2. Can the official digital sign appear only on the IDI’s “home page” and not on the other web pages that make up the website?
Answer: No. Under Part 328, the FDIC official digital sign must be displayed on the (1) initial or homepage of the IDI’s website or application, (2) landing or login pages, and (3) pages where a customer may transact with deposits. For example, the FDIC official digital sign should be displayed where a mobile application allows customers to deposit checks remotely, because this electronic space is in effect a digital teller window. 12 CFR § 328.5(d).
3. Where are we required to place the official digital sign on a bank webpage or app to ensure compliance with the “clear,” “continuous,” and “conspicuous” placement of the digital sign?
Answer: The final rule requires IDIs to display the official digital sign in a clear, continuous, and conspicuous manner. In general, the FDIC would expect to see official digital signs displayed on the applicable pages (see answer II. A. 2. above for the applicable pages) in a manner that is clearly legible to all consumers to ensure they can read it easily. The official digital sign could be displayed above the IDI’s name, to the right of the IDI’s name or below the IDI’s name, but under all circumstances, the official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule.
4. Can the official digital sign be dismissed once a customer logs in?
Answer: No. The final rule requires that the official digital sign be displayed “in a continuous manner,” which means it must remain visible on the (1) initial page or homepage of the website or application, (2) landing or login pages, and (3) pages where the customer may transact with deposits. 12 CFR § 328.5(d). The final rule, however, does not require the official digital sign to continue to follow the user as they scroll up or down the screen.
5. Does the official digital sign need to be linked to the FDIC’s website?
Answer: No. Part 328 does not require the official digital sign to be linked to the FDIC’s website. However, it may be helpful to consumers if IDIs link the official digital sign to the FDIC’s optional online BankFind tool, so that consumers can more easily confirm that the bank is FDIC-insured. This would help consumers better differentiate IDIs from non-banks. Optional, downloadable versions of the FDIC official digital sign are accessible to, and available for, bankers on FDICconnect, a secure website operated by the FDIC that FDIC-insured institutions can use to exchange information with the FDIC.
6. How should IDIs display the FDIC official digital sign on mobile devices with screen resolutions that do not support the ability to display the entirety of the digital sign on one line?
Answer: Generally, the FDIC official digital sign should be displayed as presented (shown below) in the final rule at 12 CFR § 328.5(b), with no alteration to the text except for color variation as noted in the regulation text.
However, if the image does not fit a particular device or screen, the official digital sign can be scaled, “wrapped,” or “stacked” to fit the relevant screen and may satisfy the “clear and conspicuous” requirement.
7. If an IDI’s name appears at the top of its website, and it also appears in the website’s footer, does the new FDIC official digital sign need to be displayed at the top of the page and also in the footer?
Answer: Under the final rule, IDIs are required to display the FDIC official digital sign “clearly and conspicuously” in a continuous manner; the official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule. 12 CFR § 328.5(f). IDIs are not required to display the FDIC official digital sign every time the IDI’s name appears, such as in the footer of the website.
8. To satisfy the final rule’s official digital sign requirements, can the official digital sign be placed in the footer of the webpage?
Answer: No. For purposes of satisfying the final rule, IDIs are required to display the official digital sign in a clear, continuous, and conspicuous manner. The official digital sign continuously displayed near the top of the relevant page or screen and in close proximity to the IDI’s name would meet the clear and conspicuous standard under the rule. 12 CFR § 328.5(f). Therefore, placing the official digital sign in a footer of an IDI’s webpage would not meet the clear, conspicuous, and continuous display requirement.
9. If an IDI displays the FDIC official digital sign on its mobile app’s homepage and alongside the IDI’s logo within the app, is it also necessary to include this signage on the transaction portal before a customer completes a transaction?
Answer: It depends in part on what type of transaction is being completed. The FDIC official digital sign must be displayed on the (1) initial or homepage of the bank’s website or application, (2) landing or login pages, and (3) pages where a customer may transact with deposits. 12 CFR § 328.5(d). For example, the FDIC official digital sign should be displayed where an IDI’s mobile application allows customers to deposit checks remotely, because this is an electronic space where a customer is transacting with deposits.
However, if a consumer is completing a transaction by using an embedded third-party payment platform that consumers: (a) access after logging into their IDI’s website; and (b) utilize to initiate payments/move funds out of the IDI, then the official digital sign should not be posted on those pages.
10. What are examples of “pages where the customer may transact with deposits” that require the display of the FDIC official digital sign?
Answer: Examples of “pages where the customer may transact with deposits” that require the display of the FDIC official digital sign include but are not limited to: mobile application pages that allow customers to deposit checks remotely; and pages where customers may transfer deposits between deposit accounts held within the same IDI (e.g., checking to savings or vice versa). On the other hand, the FDIC would not expect an IDI to display the FDIC official digital sign on pages where a customer is transferring money from a deposit account to a non-deposit account.
11. On which webpages should IDIs include non-deposit signs and are we in compliance if we place the non-deposit signs in the footer of the webpage?
Answer: With respect to which specific webpages the non-deposit signs must be displayed, when an IDI offers both access to deposits and non-deposit products on its digital deposit-taking channels, it must display a non-deposit sign indicating that non-deposit products: are not insured by the FDIC; are not deposits; and may lose value. This non-deposit sign must be displayed clearly, conspicuously, and continuously on each page relating to non-deposit products.
With respect to whether the non-deposit signs can be placed in the footer, although there is no requirement for the non-deposit sign to be displayed near the top of the relevant page or screen, placing the non-deposit sign in a footer of an IDI’s webpage would generally not meet the clear, conspicuous, and continuous display requirement. In addition, the non-deposit products sign may not be displayed in close proximity to the FDIC official digital sign. 12 CFR § 328.5(g)(1).
B. Use of Advertising Statement on Digital Channels
1. Should IDIs include the “Member FDIC,” “Member of FDIC,” or “FDIC-Insured” advertising statement on every page of their digital platforms?
Answer: The advertising statement (e.g., “Member FDIC”) must be displayed on advertisements, consistent with 12 CFR § 328.6. It is not intended to overlap with the official digital sign, and the advertising statement is not required on web pages where an IDI displays the official digital sign, such as the bank’s homepage. However, an IDI is not prohibited from displaying the advertising statement on a page that also includes the official digital sign, so long as the use of the advertising statement on that page is otherwise consistent with the official advertising statement requirements in 12 CFR § 328.6.
C. Automated Teller Machines or Like Devices
1. When implementing new official digital signage on ATMs, are IDIs required to remove existing physical signs, or can both types of signage be displayed simultaneously?
Answer: IDIs are not required to take down physical FDIC official signs attached to ATMs. For an IDI’s ATM or like device that receives deposits but does not offer access to non-deposit products, except as described below, the final rule provides flexibility to meet the signage requirement by either (1) displaying the FDIC official digital sign electronically on ATM screens (consistent with the image as described in 12 CFR § 328.5), or (2) displaying the physical official sign by attaching or posting it to the ATM.
However, IDIs’ ATMs or like devices that accept deposits and are put into service after January 1, 2025, must display the official digital sign electronically (with no option to satisfy the requirement through display of the physical official sign). 12 CFR § 328.4(e).
D. Social Media
1. Are IDIs required to post the new official digital sign on its social media advertisements?
Answer: No. IDIs are not required to display the FDIC official digital sign on its social media advertisements. IDIs should ensure that social media advertisements are compliant with the official advertising statement requirements contained in 12 CFR § 328.6.
III. Technical Assistance
1. Where can IDI’s obtain additional information about the final rule to support compliance efforts?
Answer: The FDIC posted the slides from the FDIC’s banker webinar on Part 328 on its website.
The FDIC issued a Financial Institutions Letter and press release addressing the issuance of the final rule.
The final rule was published in the Federal Register on January 18th, 2024.
2. Where can IDIs obtain downloadable versions of the digital official sign?
Answer: The FDIC has made optional versions of the official digital sign available for IDIs on FDICconnect, a secure website operated by the FDIC that FDIC-insured institutions can use to exchange information with the FDIC. The requirement to display the new FDIC official digital sign only applies to IDIs. Display of the FDIC official digital sign by any non-bank third party would improperly imply that the non-bank is FDIC-insured and would constitute a misrepresentation under Part 328 subpart B.
IV. Compliance and Effective Dates
1. Are there any changes that had to have been implemented by the final rule’s April 1, 2024 effective date, or do IDIs have until January 1, 2025, to comply with all requirements?
The compliance date for the amendments made to the final rule is January 1, 2025. No changes had to be implemented by April 1, 2024, but IDIs can begin posting the official digital sign and implementing other aspects of the regulation prior to January 1, 2025. For example, some IDIs have already posted the new official digital sign on their websites. Similarly, some non-bank entities have updated their disclosures consistent with the amendments to Part 328 subpart B.
V. Advertising for Non-Deposit Products
1. In marketing materials that feature safe deposit boxes or credit products alongside insured products like checking accounts, should IDIs include a disclosure stating that these products are not FDIC-insured?
Answer: For the purposes of Part 328, safe deposit boxes and credit products are excluded from the definition of “non-deposit product.” Therefore, there is no requirement under Part 328 for an IDI to include such a disclosure in marketing material for these products.
We are halfway through the year – have you scheduled all your compliance engagements? Contact us at [email protected] or (800) 934-7347 for your compliance, BSA and Fair Lending needs.
FDIC Signage FAQ as of July 19, 2024
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