In a letter sent earlier this month, the Bank Policy Institute, the American Bankers Association and the Independent Community Bankers of America (the “trade groups”) have asked the FDIC for more time to comment on the agency’s proposal, published in the Federal Register on December 21, 2022, to update its existing regulations governing use and misuse of the FDIC’s name, logo and official sign, and adding further detail to rules regarding misrepresentation of insured status.

In the letter, the trade groups expressed support for the FDIC’s “effort to update its existing regulations to reflect innovation in the financial services marketplace.”  However, they pointed out that the FDIC proposal will require comprehensive evaluation by, and significant coordination between, multiple divisions of financial institutions.  Further, the letter notes that the timing of the proposal’s publication and beginning of the comment period were immediately prior to year-end and the winter holidays, when many individuals take personal time off.  Accordingly, to enable banks to compile “adequate details to comprehensively respond”, and enable the trade groups to “develop a carefully considered and well-informed comment letter,” the trade groups ask the CFPB to extend the comment deadline, currently set for February 21, 2023,  for at least an additional 45 days. 

We continue to encourage industry participants to carefully review, and provide thoughtful input to the FDIC on, all aspects of this proposal.

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