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For Release

WASHINGTON — �౦��Ϸ���� (�౦��Ϸ����) today issued a proposed rule 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. This statutory authority allows the �౦��Ϸ���� to bring formal enforcement actions, such as cease and desist orders or civil money penalties, against individuals or entities for violations.

The proposed rule describes the process by which the �౦��Ϸ���� would identify and investigate potential violations, and the procedures it would follow, when formally and informally enforcing the statutory prohibitions. The proposed rule would also create a central point-of-contact where the public could report or make inquiries about potential violations. Additionally, the proposed rule would establish a more transparent process that would promote stability and public confidence in �౦��Ϸ���� deposit insurance and the nation’s financial system.

Recently, the �౦��Ϸ���� has noticed an increase in the number of cases where individuals or entities have misused the �౦��Ϸ����’s name or logo, or have made false or misleading representations about deposit insurance. Historically, the �౦��Ϸ���� has resolved these matters by sending a letter to the responsible parties requesting corrective action be taken. Between January 1, 2019 and December 31, 2020, the �౦��Ϸ���� sent 165 such letters. The proposed rule includes a similar informal resolution process as well as more formal enforcement procedures.

Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register .