WASHINGTON (11/30/11)--The Jan. 1 mandatory compliance date for the National Credit Union Administration's (NCUA) new share insurance advertising requirements is rapidly approaching, the Credit Union National Association (CUNA) has reminded credit unions in a recent CompBlog post.
The NCUA in May approved revisions to its advertising regulations to require radio and television ads to include a reference to National Credit Union Share Insurance Fund (NCUSIF) coverage. CUNA pressed the NCUA not to require all ads to feature this reference, and the NCUA in its final rule elected to exempt ads that are less than 15 seconds from the rule.
The final rule applies to the cover page of credit union annual reports and main internet pages.
Credit unions may choose one of three methods to provide the NCUA's official advertising statement: A longer statement saying "this credit union is federally insured by the National Credit Union Administration"; a shorter version, simply stating "federally insured by NCUA"; or a visual reproduction of the NCUA's official sign. Although the agency's advertising regulation does not dictate a specific font size for the so-called "official statement," the statement must be clearly legible and the font size must be no smaller than the smallest font size used in other portions of the advertisement, CUNA added.
CUNA said credit unions should ensure that these official statements are included in applicable radio and television ads, their annual reports, and their statements of condition required to be published by law. The statements must be placed in a "prominent position on the cover page of such documents or on the first page a reader sees if there is no cover page," according to the NCUA rule.
For CUNA's full CompBlog post, use the resource link.