Author: Andrew Howard
In conjunction with the recently released official signage ruling, the FDIC has also published a FAQ on July 16, 2024, answering some of the most popular questions about the part 328 final rule. Highlighted below are a few of the questions and answers provided by the FDIC that we thought were of interest.
Physical Premises
Q #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?
A: 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.
Non-Deposit Signs
Q #1: Is the non-deposit sign required to be displayed in the individual offices within IDIs where non-deposit products are offered?
A: 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.
Digital Channels
Q #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?
A: 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 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.
Q #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?
A: 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.
In conjunction with the recently released official signage ruling, the FDIC has also published a FAQ on July 16, 2024, answering some of the most popular questions about the part 328 final rule. Highlighted below are a few of the questions and answers provided by the FDIC that we thought were of interest.
Physical Premises
Q #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?
A: 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.
- In contrast to the question and answer proposed above, the final rule for part 328.3(b)(2) states that if insured deposits are usually and normally received in areas of the premises other than teller windows or stations, the official sign must be displayed in one or more locations in a manner that ensures the copy of the sign is large enough to be legible from anywhere in the area. While the regulation provides some flexibility with posting the official sign for institutions that do not offer non-deposit products, it would be a best practice for institutions to continue to post the official sign at each area that accepts deposits based on the FDIC’s answer.
Non-Deposit Signs
Q #1: Is the non-deposit sign required to be displayed in the individual offices within IDIs where non-deposit products are offered?
A: 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.
Digital Channels
Q #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?
A: 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 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.
Q #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?
A: 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.
The amendments made by the final ruling went into effect April 1, 2024, with a mandatory compliance date of January 1, 2025. For more information, please visit the link below.
FAQ
Financial Institution Letter
Final Rule Memorandum
The amendments made by the final ruling went into effect April 1, 2024, with a mandatory compliance date of January 1, 2025. For more information, please visit the link below.
FAQ
Financial Institution Letter
Final Rule Memorandum
RSS Feed