Proposed Rule2025-23854
Accuracy of Advertising and Notice of Insured Status
Primary source
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Published
December 29, 2025
Issuing agencies
National Credit Union Administration
Abstract
The NCUA Board (Board) is issuing this proposed rule to streamline its regulations governing advertising and the notice of insured status. This proposed rule would eliminate provisions concerning the official advertising statement. This action is undertaken to reduce regulatory complexity, and the intended effect is to reduce the administrative burden and costs for federally insured credit unions (FICUs) and provide them with greater flexibility in their advertising activities. The proposed rule would not amend requirements related to displaying the official sign.
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Proposed Rules]
[Pages 60588-60591]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23854]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 740
RIN 3133-AF75
Accuracy of Advertising and Notice of Insured Status
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
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SUMMARY: The NCUA Board (Board) is issuing this proposed rule to
streamline its regulations governing advertising and the notice of
insured status. This proposed rule would eliminate provisions
concerning the official advertising statement. This action is
undertaken to reduce regulatory complexity, and the intended effect is
to reduce the administrative burden and costs for federally insured
credit unions (FICUs) and provide them with greater flexibility in
their advertising activities. The proposed rule would not amend
requirements related to displaying the official sign.
DATES: Comments must be received by February 27, 2026.
ADDRESSES: Comments may be submitted in one of the following ways.
(Please send comments by one method only):
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
The docket number for this proposed rule is NCUA-2025-1436. Follow the
``Submit a comment'' instructions. If you are reading this document on
<a href="http://federalregister.gov">federalregister.gov</a>, you may use the green ``SUBMIT A PUBLIC COMMENT''
button beneath this rulemaking's title to submit a comment to the
<a href="http://regulations.gov">regulations.gov</a> docket. A plain language summary of the proposed rule
is also available on the docket website.
<bullet> Mail: Address to Melane Conyers-Ausbrooks, Secretary of
the Board, National Credit Union Administration, 1775 Duke Street,
Alexandria, Virginia 22314-3428.
<bullet> Hand Delivery/Courier: Same as mailing address.
Mailed and hand-delivered comments must be received by the close of
the comment period.
Public inspection: Please follow the search instructions on <a href="https://www.regulations.gov">https://www.regulations.gov</a> to view the public comments. Do not include any
personally identifiable information (such as name, address, or other
contact information) or confidential business information that you do
not want publicly disclosed. All comments are public records; they are
publicly displayed exactly as received, and will not be deleted,
modified, or redacted. Comments may be submitted anonymously. If you
are unable to access public comments on the internet, you may contact
the NCUA for alternative access by calling (703) 518-6540 or emailing
<a href="/cdn-cgi/l/email-protection#b7f8f0f4fad6dedbf7d9d4c2d699d0d8c1"><span class="__cf_email__" data-cfemail="f5bab2b6b8949c99b59b968094db929a83">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Rachel Ackmann, Senior Attorney,
Office of General Counsel, at (703) 518-6540 or at 1775 Duke Street,
Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:
[[Page 60589]]
I. Introduction
A. Background
The Board comprehensively revised and streamlined part 740 in a
2003 final rule.\1\ The primary purpose of the 2003 revision was to
modernize the regulation for clarity, address the growing use of the
internet for member transactions, and clarify the use of trade names in
advertising. The NCUA's goal was to ensure members were adequately
informed of their federal share insurance coverage while imposing a
minimal regulatory burden.
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\1\ 68 FR 23382 (May 2, 2003).
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Over the subsequent years, the NCUA amended these regulations
several times. In the 2006 final rule, the NCUA revised the official
sign to reflect statutory changes from the Federal Deposit Insurance
Reform Act of 2005, which included adding a statement that insured
accounts are backed by the full faith and credit of the United States
Government.
A subsequent 2008 final rule provided credit unions with additional
flexibility by permitting the use of a shortened advertising statement,
``Federally insured by NCUA,'' or the official sign itself in
advertisements.\2\ In a 2011 final rule, the Board made the advertising
rules more stringent.\3\ This amendment, among other changes, reduced
the time exemption for radio and television advertisements from 30
seconds to 15 seconds. It also introduced the requirement to include
the official advertising statement in annual reports and statements of
condition, clarified that the statement's font size in print must be no
smaller than the smallest font used for other consumer information, and
defined the term ``advertisement'' for the first time.
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\2\ 73 FR 56936 (Oct. 1, 2008).
\3\ 76 FR 30523 (May 26, 2011).
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However, in a 2018 final rule, the NCUA reversed the 2011 change to
the broadcast advertisement exemption to provide regulatory relief and
restore parity with regulations for banks insured by the Federal
Deposit Insurance Corporation.\4\ The 2018 rule expanded the radio and
television exemption back to 30 seconds and introduced a shorter
advertising statement option: ``Insured by NCUA.'' Most recently, a
2020 final rule made technical corrections to improve clarity.\5\
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\4\ 83 FR 17913 (Apr. 25, 2018).
\5\ 85 FR 62213 (Oct. 2, 2020).
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B. Legal Authority
Section 205(a) of the Federal Credit Union Act (FCU Act) (12 U.S.C.
1785(a)) requires each FICU to display a sign relating to the insurance
of its share accounts.\6\ The NCUA implements this requirement in part
740 of its rules (part 740).\7\ Part 740 also requires that each FICU
include an official advertising statement related to share insurance in
all advertisements.\8\ This requirement originated from a historic
statutory provision in section 1785(a). Before 2005, section 1785(a)
required every FICU to include a statement in all advertisements
reiterating that its member accounts are insured by the Board. Section
1785(a) also provided that the Board may exempt advertisements from
this requirement if the advertisements do not relate to member accounts
or when it is impractical to include such a statement.
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\6\ 12 U.S.C. 1785(a).
\7\ 12 CFR pt. 740.
\8\ 12 CFR 740.5.
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The 2005 statutory amendment retained the requirement for FICUs to
post official signs but removed the requirement to include official
advertising statements. The NCUA issued a final rule implementing
changes associated with the 2005 statutory amendments in 2006 (2006
final rule) but did not remove the portions of part 740 that
implemented the historical requirement to include an official
advertising statement.\9\ Part 740 currently includes both the
requirements for an official sign and advertising statement.\10\
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\9\ 71 FR 36719 (2006). The Board notes that the FCU Act grants
the NCUA a broad mandate to issue regulations governing both federal
and state-chartered credit unions. Section 120 of the FCU Act is a
general grant of regulatory authority, and it authorizes the Board
to prescribe rules and regulations for the administration of the FCU
Act. 12 U.S.C. 1766(a). Section 209 of the FCU Act is a plenary
grant of regulatory authority to the NCUA to issue rules and
regulations necessary or appropriate to carry out its role as share
insurer for all FICUs. 12 U.S.C. 1789. Additionally, Section 204 of
the FCU Act authorizes the Board, through its examiners, ``to
examine any [FICU] . . . to determine the condition of any such
credit union for insurance purposes.'' 12 U.S.C. 1784.
\10\ The NCUA has updated part 740 several times since 2006 but
has not discussed the change in statutory authority, and it does not
appear commenters have raised concerns either. See, 73 FR 56935
(Oct. 1, 2008); 76 FR 30521 (May 26, 2011), and 83 FR 17910 (Apr.
25, 2018).
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II. Proposed Rule
This proposed rule would amend two sections within part 740 and is
intended to promote regulatory efficiency and reduce unnecessary
burdens on FICUs. This proposed rule would remove Sec. 740.5 related
to the official advertising statement and revise Sec. 740.0 to remove
references to the official advertising statement. This action is
intended to provide FICUs with greater flexibility in their advertising
activities while ensuring that members continue to receive clear and
accurate information about their share insurance coverage through other
required disclosures.
Section 740.5 establishes the specific requirements for the
official advertising statement. It mandates that FICUs include one of
three prescribed official statements or an alternative, namely--``This
credit union is federally insured by the National Credit Union
Administration,'' ``Federally insured by NCUA,'' ``Insured by NCUA,''
or a reproduction of the official sign--in all advertisements, unless
specifically exempted. The regulation requires the statement to be
clearly legible and with a font that is no smaller than the smallest
font used for other consumer information in the advertisement. Section
740.5 also details numerous exemptions, specifying that the official
statement is not required for certain items such as stationery, checks,
signs within a credit union's office, directory listings, radio and
television advertisements of 30 seconds or less, promotional items
where inclusion is impractical, and advertisements that do not relate
to member accounts, such as those for loans or safe deposit box
services.
The Board is proposing to eliminate Sec. 740.5 because the section
imposes an unnecessary and undue compliance burden on FICUs that is
disproportionate to its limited public benefit. The highly prescriptive
nature of the rule, with its specific textual requirements and complex
list of exceptions for items ranging from radio spots to promotional
pens, forces FICUs to dedicate administrative resources to compliance.
This approach is inflexible and poorly suited to the modern, fast-paced
advertising landscape, particularly in the context of digital and
social media, where space is often limited and communication must be
concise.
Furthermore, the Board believes the rule is largely unnecessary
because its core objective--ensuring members are aware of their federal
insurance coverage--is effectively achieved through other, more direct
means. The NCUA has long held it is important for consumers of
advertisements to know that the share accounts in the advertising FICU
are federally insured by the NCUA.\11\ The Board has also stated that
it believes the benefits to consumers and FICUs--namely, enhanced
consumer confidence and agency name recognition--outweigh the
relatively minor burden associated with
[[Page 60590]]
requiring the inclusion of the official advertising statement.
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\11\ 76 FR 30521 (May 26, 2011).
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However, the Board now believes these objectives are best met
through other provisions of part 740, and the advertising statement is
unnecessary. First, the requirements in Sec. 740.4, which are not
being amended by this rule, mandate the display of the official NCUA
sign in a FICU's offices and on its website where members can open
share accounts and deposit funds.\12\ This ensures that members receive
prominent notice of their insured status at the key points of
transaction and interaction. Second, the requirements in Sec. 740.2
mandate that FICU advertising be accurate and truthful. This provision
ensures that, if a FICU references its federal share insurance in
advertisements, it does so accurately. For example, if a FICU states it
is NCUA insured in an advertisement that includes noninsured products,
the advertisement should be clear that the product is not insured. The
additional requirement to include a specific statement in all
advertisements on share insurance is therefore redundant and does not
materially enhance member protection in a way that justifies the
associated compliance costs.
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\12\ The Board notes that it treats mobile banking applications
similar to internet pages and the official sign is required on the
main page and the log-on screen where members identify themselves to
conduct transactions online. The official sign is also required on a
membership application page. Displaying the official sign there will
provide adequate notice of federal share insurance to the member.
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This policy to remove the requirement for an official advertising
statement is also supported by the fact that the requirement in Sec.
740.5 is not statutorily mandated. As discussed above, the FCU Act
explicitly directs the Board to issue regulations regarding the display
of the official sign. No provision in the FCU Act compels the Board to
create or enforce a separate, distinct official advertising statement
to be included in all advertisements. As the rule is not required by
law and imposes an unnecessary burden, its removal is a logical step to
streamline the regulatory framework. FICUs may continue to include an
advertising statement, provided the inclusion is not inaccurate or
deceptive, but will not be required to include an advertising
statement.
Finally, the proposed rule would also amend Sec. 740.0, which
outlines the scope of part 740. Part 740 currently references the
official advertising statement. With the removal of the substantive
requirements in Sec. 740.5, retaining a scope section that references
these rules would be inaccurate and create confusion. Therefore, the
proposed rule would remove references in Sec. 740.0 to the advertising
statement.
The Board solicits comments on all aspects of the proposed rule.
III. Regulatory Procedures
A. Providing Accountability Through Transparency Act of 2023
The Providing Accountability Through Transparency Act of 2023 (5
U.S.C. 553(b)(4)) (Act) requires that a notice of proposed rulemaking
include the internet address of a summary of not more than 100 words in
length of a proposed rule, in plain language, that shall be posted on
the internet website under section 206(d) of the E-Government Act of
2002 (44 U.S.C. 3501 note) (commonly known as <a href="http://regulations.gov">regulations.gov</a>). The
Act, under its terms, applies to notices of proposed rulemaking and
does not expressly include other types of documents that the Board
publishes voluntarily for public comment, such as notices and interim-
final rules that request comment despite invoking ``good cause'' to
forgo such notice and public procedure. The Board, however, has elected
to address the Act's requirement in these types of documents in the
interests of administrative consistency and transparency.
The Board is issuing this proposed rule to streamline its
regulations governing advertising and the notice of insured status.
This proposed rule would eliminate provisions concerning the official
advertising statement. This action is undertaken to reduce regulatory
complexity and the intended effect is to reduce the administrative
burden and costs for FICUs and provide them with greater flexibility in
their advertising activities.
The proposal and the required summary can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
B. Executive Orders 12866, 13563, and 14192
Pursuant to Executive Order 12866 (``Regulatory Planning and
Review''), as amended by Executive Order 14215, a determination must be
made whether a regulatory action is significant and therefore subject
to review by the Office of Management and Budget (OMB) in accordance
with the requirements of the Executive Order.\13\ Executive Order 13563
(``Improving Regulation and Regulatory Review'') supplements and
reaffirms the principles, structures, and definitions governing
contemporary regulatory review established in Executive Order
12866.\14\ This proposed rule was drafted and reviewed in accordance
with Executive Order 12866 and Executive Order 13563. OMB has
determined that this proposed rule is not a ``significant regulatory
action'' as defined in section 3(f)(1) of Executive Order 12866. This
proposed rule will reduce the burden of including an official
advertising statement on all advertisements unless otherwise exempt and
is consistent with Executive Order 13563.
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\13\ 58 FR 51735 (Oct. 4, 1993).
\14\ 76 FR 3821 (Jan. 21, 2011).
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Executive Order 14192 (``Unleashing Prosperity Through
Deregulation'') requires that any new incremental costs associated with
new regulations shall, to the extent permitted by law, be offset by the
elimination of existing costs associated with at least 10 prior
regulations.\15\ This proposed rule is expected to be a deregulatory
action for purposes of Executive Order 14192.
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\15\ 90 FR 9065 (Feb. 6, 2025).
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C. Regulatory Flexibility Act
The Regulatory Flexibility Act \16\ generally requires an agency to
conduct a regulatory flexibility analysis of any rule subject to notice
and comment rulemaking requirements, unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities. If the agency makes such a certification, it
shall publish the certification at the time of publication of either
the proposed rule or the final rule, along with a statement providing
the factual basis for such certification.\17\ For purposes of this
analysis, the NCUA considers small credit unions to be those having
under $100 million in assets.\18\ The Board fully considered the
potential economic impacts of the regulatory amendments on small credit
unions.
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\16\ 5 U.S.C. 601 et seq.
\17\ 5 U.S.C. 605(b).
\18\ 80 FR 57512 (Sept. 24, 2015).
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This rule is narrow in scope and purely deregulatory. Further,
FICUs may voluntarily continue to include the official advertising
statement in their advertisements and may choose not to change their
current practices. Accordingly, the NCUA certifies the proposed rule
would not have a significant economic impact on a substantial number of
small credit unions.
D. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) generally provides that
an agency may not conduct or sponsor, and not withstanding any other
provision of
[[Page 60591]]
law, a person is not required to respond to, a collection of
information, unless it displays a currently valid Office of Management
and Budget (OMB) control number. The PRA applies to rulemakings in
which an agency creates a new or amends existing information collection
requirements. For purposes of the PRA, an information-collection
requirement may take the form of a reporting, recordkeeping, or a
third-party disclosure requirement. The NCUA has determined that the
changes described in this notice do not create a new information
collection or revise an existing information collection as defined by
the PRA.
E. Executive Order 13132 on Federalism
Executive Order 13132 encourages certain agencies to consider the
impact of their actions on state and local interests. The NCUA, a
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies
with the executive order to adhere to fundamental federalism
principles. This proposed rule would apply to all FICUs, including
state-chartered credit unions. The NCUA expects that any effect on
states or on the distribution of power and responsibilities among the
various levels of government will be minor. The proposed changes would
remove an existing requirement on state-chartered credit unions and
would not affect the division of responsibilities between the NCUA and
state regulatory authorities with oversight of federally insured,
state-chartered credit unions. These changes relate to the NCUA's
insurance of member accounts, which is a distinct federal function. The
proposed changes are deregulatory and would relieve burdens on state-
chartered credit unions. The rulemaking would therefore not have a
direct effect on the states, the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government.
F. Assessment of Federal Regulations and Policies on Families
The NCUA has determined that this proposed rule would not affect
family well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, 1999.\19\ The proposed rule
relates to FICUs' advertisements, but the Board does not believe it
will cause member confusion regarding share insurance coverage.
Therefore, any effect on family well-being is expected to be indirect.
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\19\ Public Law 105-277, 112 Stat. 2681 (1998).
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List of Subjects in 12 CFR Part 740
Bank deposit insurance, Credit unions, Reporting and recordkeeping
requirements, Signs and symbols.
By the National Credit Union Administration Board, this 19th day
of December, 2025.
Melane Conyers-Ausbrooks,
Secretary of the Board.
For the reasons set forth in the preamble, the Board proposes to
amend 12 CFR part 740 to read as follows:
PART 740--ACCURACY OF ADVERTISING AND NOTICE OF INSURED STATUS
0
1. The authority citation for part 740 continues to read as follows:
Authority: 12 U.S.C. 1766, 1781, 1785, and 1789.
0
2. Revise Sec. 740.0 to read as follows:
Sec. 740.0 Scope.
This part applies to all federally insured credit unions. It
prescribes the requirements for the official sign insured credit unions
must display. It requires that all other kinds of advertisements be
accurate. It also establishes requirements for advertisements of excess
insurance.
Sec. 740.5 [Removed]
0
3. Remove Sec. 740.5.
[FR Doc. 2025-23854 Filed 12-23-25; 8:45 am]
BILLING CODE 7535-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.