IBA Compliance Connection

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Do we need to display the FDIC logo on everything that has our name on it – including a rib bib at a local festival that we sponsor or a brochure for a non-profit organization’s event that we sponsor?

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Yes, we believe you are required to include the “Member of FDIC” statement on both items, subject to the discussion below. The FDIC Advertisement of Membership rules require banks to include the “Member of FDIC” or “Member FDIC” statement in advertisements, unless an exception applies. “Advertisement” is defined broadly as a commercial message that is designed to attract public attention or patronage to a product or business. Notably, the rules require the Member FDIC statement for any advertisement that promotes non-specific banking products and services, such as when the advertisement “includes the name of the insured depository institution but does not list or describe particular products or services offered by the institution.”

In this case, the brochure for the not-for-profit event sounds as if it should be treated as an advertisement because the brochure will display your bank’s name in order to attract public attention to your bank. We are not aware of any exception that would apply in this case.

We also believe displaying your bank’s name on a rib bib for a local event that your bank sponsors would be considered an advertisement triggering the FDIC logo requirement. However, there is an exception to the requirement for advertisements that are of the type or character that make it impractical to include the official FDIC advertising statement, including promotional items such as calendars, matchbooks, pens, pencils, and key chains. You may be able to argue that it is impractical to include the FDIC advertising statement on a rib bib, depending on the size and material of the bib. Apart from impracticality, however, we are not aware of any other exceptions that would apply.

For resources related to our guidance, please see:

  • FDIC Advertisement of Membership Rules, 12 CFR 328.3(c) (Except as provided in §328.3(d), each insured depository institution shall include the official advertising statement prescribed in §328.3(b) in all advertisements that either promote deposit products and services or promote non-specific banking products and services offered by the institution. For purposes of this §328.3, an advertisement promotes non-specific banking products and services if it includes the name of the insured depository institution but does not list or describe particular products or services offered by the institution.”)
  • FDIC Advertisement of Membership Rules, 12 CFR 328.3(b)(1) (“The short title ‘Member of FDIC’ or ‘Member FDIC,’ or a reproduction of the symbol of the Corporation (as described in §328.1(b)), may be used by insured depository institutions at their option as the official advertising statement.”)
  • FDIC Advertisement of Membership Rules, 12 CFR 328.3(a) (“Advertisement” means “a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business.”)
  • FDIC Advertisement of Membership Rules, 12 CFR 328.3(d) (Listing ten types of advertisements which do not require the official advertising statement, including “advertisements which are of the type or character that make it impractical to include the official advertising statement, including, but not limited to, promotional items such as calendars, matchbooks, pens, pencils, and key chains”)