An extension of 45 days to the comment period for proposed changes to rules about misrepresentations of deposit insurance was announced Monday by the federal bank deposit insurance agency.
Comments will now be due by April 7.
In December, the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposal rulemaking (NPR) that, among other things, aimed to differentiate federally insured bank deposits from non-insured savings. That includes financial products offered by non-federally insured financial firms, such as financial technology firms (fintechs).
The rule is officially a part of regulations governing the use of sign and advertising statement requirements, in particular clarifying the FDIC rules regarding misrepresentations of deposit insurance coverage provided by the agency.
The proposal, the FDIC said, addresses specific scenarios where consumers may be misled about whether their funds are protected by deposit insurance. The changes, according to the agency, would enable consumers to better understand when they are doing business with an insured depository institution (IDI) and when their funds are covered by the FDIC’s deposit insurance.
The original comment period for the proposal, issued Dec. 13, was 60 days. “After receiving requests to extend the comment period, the FDIC determined that a 45-day extension of the comment period is appropriate and will provide additional opportunity for the public to prepare comments and address the matters raised by the NPR,” the FDIC said in a statement.
In addition to clarifying rules on misrepresentation, the agency said the proposal also would modernize the rules governing the use of the official FDIC sign and bank advertising statements “to reflect how depositors do business with IDIs today, including through digital and mobile channels.”