NCUA Proposes to Eliminate the Official Advertising Statement Requirement

Less Is More

NCUA Proposes to Eliminate the Official Advertising Statement Requirement

The National Credit Union Administration has issued a proposed rule that would significantly simplify advertising requirements for federally insured credit unions.

At a high level, the proposal would remove the long-standing requirement that credit unions include an official advertising statement—such as “Federally insured by NCUA”—in all advertisements. The rule is part of the agency’s broader effort to reduce regulatory burden while maintaining safety, soundness, and consumer protection.

What the Proposal Would Change

Under the proposal, NCUA would eliminate section 740.5 of its regulations, which currently governs the official advertising statement. That section is highly prescriptive, specifying exact wording, font size requirements, and a long list of exemptions depending on the type of advertisement.

If finalized as proposed, credit unions would no longer be required to include an official insurance statement in every advertisement. This includes print, digital, and promotional materials where the rule has historically been difficult to apply in a consistent and practical way.

NCUA would also revise section 740.0 to remove references to the advertising statement so that the scope section accurately reflects the remaining requirements.

What Is Not Changing

It’s important to be clear about what this proposal does not do.

The requirement to display the official NCUA insurance sign remains fully intact. Credit unions must still display the sign in their offices and in digital locations where members can open share accounts and deposit funds, including websites and mobile applications.

In addition, the rule requiring advertising to be accurate and truthful is not changing. If a credit union references federal share insurance in any advertisement, that reference must still be clear and not misleading—particularly when advertisements include non-insured products.

Why NCUA Is Making This Change

NCUA’s stated rationale is that the official advertising statement has become unnecessarily burdensome and poorly aligned with modern advertising practices.

The Board notes that the rule’s highly detailed requirements force credit unions to spend administrative time and resources on compliance activities that provide limited additional consumer benefit. This is especially true in digital and social media advertising, where space is limited and messaging must be concise.

The Board also points out that the advertising statement is not statutorily required. While federal law requires the display of the official insurance sign, it does not mandate a separate advertising statement in all promotional materials. Given that members already receive notice of insurance coverage through required signage and other disclosures, NCUA believes the advertising statement is redundant.

Practical Takeaways for Credit Unions

If this proposal is finalized, credit unions will gain meaningful flexibility in how they approach advertising and marketing. However, flexibility does not eliminate examiner expectations.

Accuracy and clarity will continue to matter. Examiners will still expect advertising to be truthful, particularly when referencing insurance coverage alongside non-insured products. The focus is likely to shift away from rigid wording requirements and toward whether the overall message could confuse or mislead a reasonable member.

In other words, this proposal removes a check-the-box compliance item—but it does not remove judgment.

Next Steps

NCUA is soliciting comments on all aspects of the proposed rule. Credit unions and industry stakeholders should review the proposal carefully and consider whether to submit comments, particularly if they have experienced challenges complying with the current advertising statement requirements.

For those who want a direct, unfiltered look at the proposal, I’ve released an audiobook-style podcast episode that reads the relevant portions of the rule verbatim, without interpretation or commentary.