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Summary:

The Board of Directors of the Federal Deposit Insurance Corporation (�౦��Ϸ����) today approved a notice of proposed rulemaking implementing its statutory authority to prohibit any person or organization from making misrepresentations about �౦��Ϸ���� deposit insurance, or misusing the �౦��Ϸ����’s name or logo. The proposed rule is intended to provide transparency on the �౦��Ϸ����’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 �౦��Ϸ����-supervised financial institutions.

Highlights:

• 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 �౦��Ϸ����’s name or logo in a manner that would imply that an uninsured financial product is insured or guaranteed by the �౦��Ϸ����; or
• Knowingly misrepresenting the extent and manner of deposit insurance.


• The �౦��Ϸ���� has authority to investigate violations and take action to enforce Section 18(a)(4).
• The proposed rule describes:
• The process by which the �౦��Ϸ���� 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 �౦��Ϸ���� 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 �౦��Ϸ���� 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 .

Distribution:

�౦��Ϸ����-Supervised Institutions

Suggested Routing:

Chief Executive Officer
Chief Information Officer
Chief Compliance Officer