IBA Compliance Connection

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Occasionally our bank will sponsor a non-profit’s fundraising event. The donation levels are printed in the event program with the bank’s logo, which includes the bank’s name. Is the event program considered to be advertising that would require the use of the “Member of FDIC” statement?

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Yes, it is likely that the event program would be considered to be advertising, triggering the requirement for the “Member of FDIC” statement.

The FDIC Advertisement of Membership rules require the “Member of FDIC” or “Member FDIC” statement for certain types of advertisements. “Advertisement” is defined broadly as a commercial message that is designed to attract public attention or patronage to a product or business. Specifically, 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.”

From what you have told us, it sounds as if the event program should be treated as an advertisement, because the program is a commercial message that includes the bank’s logo with the bank’s name. We are not aware of any exceptions that would apply in this case.

For resources related to our guidance, please see:

  • 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(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.”)