Amendments to FDIC Guidelines for Appeals of Material Supervisory Determinations

Summary:

The FDIC is amending the agency’s Guidelines for Appeals of Material Supervisory Determinations (Guidelines). Through these amendments, the FDIC is replacing the current Supervision Appeals Review Committee with an independent, standalone office within the FDIC, known as the Office of Supervisory Appeals (Office). The Office will serve as the final level of review of material supervisory determinations made by the FDIC. 

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

Highlights:

• The Office will be independent of the Divisions that make supervisory determinations. An institution may appeal a material supervisory determination to the Office after the appropriate Division Director’s review of the material supervisory determination.
• The Office will be staffed by reviewing officials who have direct experience with the supervisory process, and may include former government officials, former bankers, and other former industry professionals. Each panel will include at least one reviewing official with bank supervisory experience and at least one reviewing official with industry experience. Reviewing officials will be subject to confidentiality and conflict of interest requirements.
• The Office will make an independent supervisory determination without deferring to the judgements of either party, subject to the reasonableness of and the support for the positions advanced.
• In addition, institutions’ appeal rights will be expanded to permit appeals in certain cases when an enforcement action is proposed or pending.
• The FDIC will notify institutions once the Office is operational.