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On December 21, 2022, the FDIC published a Federal Register notice addressing official sign and advertising requirements, false advertising, and misrepresentation of insured status. This rulemaking is directly relevant to the BaaS ecosystem where fintechs market deposit products on behalf of partner banks and consumers may be confused about whether their funds are FDIC-insured. The rule clarifies the obligations of insured depository institutions and non-bank entities regarding accurate representation of FDIC insurance coverage. It addresses scenarios common in BaaS arrangements where fintech interfaces may create the impression of FDIC coverage where it does not apply or may misrepresent the nature of the insured relationship. The rule was issued amid growing concern about deposit-related misrepresentations in fintech marketing, foreshadowing issues that would later arise in cases like the Synapse collapse.

Verified from source: The FDIC published a Proposed Rule (87 FR 78017) on 12/21/2022 regarding official sign and advertising requirements, false advertising, misrepresentation of insured status, and misuse of the FDIC's name or logo, amending 12 CFR 328. This is a proposed rulemaking, not a specific enforcement action against a particular bank.