On December 13, 2022, the FDIC issued the revised Guidelines for Appeals of Material Supervisory Determinations that took effect on the same day. The revised Guidelines include the changes that the FDIC proposed in October, as well as further changes incorporating suggestions and addressing concerns raised by the commenters.
According to the FDIC, the revised Guidelines expand and clarify the role of the FDIC’s Ombudsman in the appeals process, adding the Ombudsman to the Supervision Appeals Review Committee (SARC) as a non-voting member. The Ombudsman will monitor the supervision process following an institution’s submission of an appeal and report to the Board on these matters periodically. The revised Guidelines also states that Materials considered by the SARC will be shared with both parties to the appeal on a timely basis, and in time to prepare for a meeting with the SARC, if one is requested, subject to applicable legal limitations on disclosure and oversight by the Ombudsman.
With regards to appeals, the guidelines provide that institutions may request a stay of a supervisory action or determination from the appropriate Division Director while an appeal is pending. In addition, the Division Director will have discretion to grant a stay and may grant a stay subject to certain conditions, where appropriate, and decisions will be provided to institutions, in writing, regarding a stay that includes the reasons for the decision.
The FDIC’s Financial Institution Letter can be found here.
The revised Guidelines can be found here.