Amendments to Guidelines for Appeals of Material Supervisory Determinations

Summary:

The FDIC has adopted Guidelines for Appeals of Material Supervisory Determinations that restore the Supervision Appeals Review Committee (SARC) as the final level of review in the agency’s supervisory appeals process.  The revised Guidelines take effect May 17, 2022.  The FDIC is soliciting comment on the revised Guidelines with a comment period of 30 days.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions.

Highlights:

• Under the revised Guidelines, the SARC generally replaces the Office of Supervisory Appeals as the final level of review in the FDIC’s supervisory appeals process.
• Consistent with the composition of the SARC as it stood in 2021, the SARC will include: one inside member of the FDIC’s Board of Directors (serving as Chairperson); a deputy or special assistant to each of the other inside Board members; and the General Counsel as a non-voting member.
• Aside from the substitution of the SARC as the final level of review, most aspects of the supervisory appeals process remain unchanged.
• The revised Guidelines continue to encourage institutions to make good-faith efforts to resolve disputes with on-site examiners and/or the appropriate Regional Office.  The Guidelines also continue to provide for review by the appropriate Division Director before submission of an appeal to the SARC.
• The revised Guidelines expressly permit electronic submission of appeals and provide e-mail addresses that institutions may use to submit a request for review to the appropriate Division Director or an appeal to the SARC.