The Federal Deposit Insurance Act (FDIA) established the Federal Deposit Insurance Corporation which must insure the deposits of banks and savings associations entitled to the benefits of insurance under the FDIA. Not all depository institutions are required to maintain Federal deposit insurance. The FDIA requires that depository institutions lacking Federal deposit insurance make certain insurance-related disclosures in periodic statements, account records, locations where deposits are normally received, and advertising.  The FDIA also requires such depository institutions to obtain a written acknowledgment from depositors regarding the institution’s lack of Federal deposit insurance. Prior to July 21, 2011, the FDIA required that the Federal Trade Commission (FTC), by regulation or order, prescribe the manner and content of these disclosures.
The disclosure requirements required by the FDIA for depository institutions lacking Federal deposit insurance have been implemented by the FTC in 16 CFR Part 320. The interim final rule substantially duplicates the FTC’s rule in 16 CFR Part 320 as the Bureau’s new Regulation I making only certain non-substantive, technical, formatting, and stylistic changes. To minimize any potential confusion, other than republishing the FTC’s existing rule in 16 CFR Part 320 with the CFPB’s part number, the CFPB is preserving where possible the numbering the FTC used in its existing rule. Additionally, while this interim final rule generally incorporates the FTC’s existing regulatory text, the rule has been edited as necessary to reflect nomenclature and other technical amendments required by the Dodd-Frank Act. Notably, this interim final rule does not impose any new substantive obligations on regulated entities.
A copy of revised Regulation I is located at: https://mycomplianceresource.com/CFPB-Reg-I-Disclosure-Requirements-for-Depository-Institutions-Lacking-Federal-Deposit-Insurance.html. The Federal Register copy is available at: https://mycomplianceresource.com/CFPB-The-Inherited-Regulations.html.
