InfoBytes Blog
FDIC proposes amendments to its guide on supervisory appeals process
On October 18, the FDIC Board of Directors announced it is soliciting further public comments on proposed amendments to its Guidelines for Appeals of Material Supervisory Determinations. The notice follows an action taken by the Board earlier in May, which restored the Supervision Appeals Review Committee (SARC) as the final level of review in the agency’s supervisory appeals process (covered by InfoBytes here). While the revised guidelines took effect immediately, the FDIC solicited comments on the changes. In response to comments received, the proposed amendments would add the agency’s ombudsman to the SARC as a non-voting member, and the ombudsman would be responsible for monitoring the supervision process after a financial institution submits an appeal. The proposed amendments would also require that materials considered by the SARC be shared with both parties to the appeal (subject to applicable legal limitations on disclosure), and allow financial institutions to request a stay of material supervisory determination while an appeal is pending. Additionally, the division director would be given the discretion to grant a stay or grant a stay subject to certain conditions. Comments on the proposed amendments are due within 30 days of publication in the Federal Register.