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Financial Institution Letter

Proposed Rule Regarding False Advertising, Misrepresentations About Insured Status, and Misuse of the FDIC’s Name or Logo

April 22, 2021  |  FIL-28-2021


The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a notice of proposed rulemaking implementing its statutory authority to prohibit any person or organization from making misrepresentations about FDIC deposit insurance, or misusing the FDIC’s name or logo. The proposed rule is intended to provide transparency on the FDIC’s processes for investigating and resolving potential violations of these prohibitions. Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register.

Statement of Applicability: This Financial Institution Letter applies to all FDIC-supervised financial institutions.


  • The proposed rule would implement section 18(a)(4) of the Federal Deposit Insurance Act (Section 18(a)(4)), which prohibits any person or organization from:
    • Making false or misleading representations about deposit insurance;
    • Using the FDIC’s name or logo in a manner that would imply that an uninsured financial product is insured or guaranteed by the FDIC; or
    • Knowingly misrepresenting the extent and manner of deposit insurance.

  • The FDIC has authority to investigate violations and take action to enforce Section 18(a)(4).
  • The proposed rule describes:
    • The process by which the FDIC would identify and investigate conduct that may violate Section 18(a)(4);
    • The standards under which such conduct would be evaluated; and
    • The procedures the FDIC would follow when formally and informally enforcing these prohibitions.

  • The proposed rule would establish a more transparent process that will promote stability and public confidence in FDIC deposit insurance and the nation’s financial system.
  • Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register.


FDIC-Supervised Institutions

Suggested Routing:

Chief Executive Officer
Chief Information Officer
Chief Compliance Officer