Changes to Share Insurance Advertising Requirements

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The National Credit Union Administration (NCUA) has finalized a few changes to the agency's "Accuracy in Advertising and Notice of Insured Status" rule which will become effective May 25, 2018.  NCUA's advertising rule requires federally insured credit unions (FICU) to use the agency's "official advertisement statement" in most advertisements. Previously, three versions of the official advertisement statement were permitted:

  • "This credit union is federally insured by the National Credit Union Association"
  • Federally insured by NCUA
  • A reproduction of the official sign

This new rule allows a fourth option: "Insured by NCUA".   This change is expected to enhance advertising flexibility, especially for new social media platforms.

Another important change to the advertising requirements is an exemption for radio and television advertisements that are less than 30 seconds in duration. This is a change from the "less than 15 seconds" exemption that has been in effect since 2011.         

Finally, the new rule eliminates the requirement to include the advertising statement on a credit union's statement of condition. The agency agrees this was an unnecessary requirement and eliminating it will restores parity with other financial institutions.

Click here for the final rule.  

Source: CUNA’s Compliance Blog

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