Summary:
Following up on the Board’s action to restore the Supervision Appeals Review Committee (SARC) and request for comment, the FDIC is soliciting further comment on proposed amendments to its Guidelines for Appeals of Material Supervisory Determinations (Guidelines). In response to comments received, the proposed amendments would expand and clarify the role of the agency’s Ombudsman in the supervisory appeals process, require that materials considered by the SARC be shared with both parties to the appeal, subject to applicable legal limitations on disclosure, and allow insured depository institutions to request a stay of a material supervisory determination while an appeal is pending. The notice requests comment within thirty (30) days of publication in the Federal Register.
A copy of the Notice and Request for Comment can be found on the FDIC’s website.
Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions.
Highlights:
- The proposed Guidelines would add the Ombudsman to the SARC as a non-voting member, further balancing the perspectives reflected in the composition of the SARC.
- The Ombudsman also would monitor the supervision process following an institution’s submission of an appeal under the Guidelines.
- Materials considered by the SARC would be shared with both parties to the appeal, subject to applicable legal limitations on disclosure and oversight by the Ombudsman.
- The proposal would allow an institution to request a stay of a supervisory action or determination from the appropriate Division Director while an appeal is pending. The Division Director would have discretion to grant a stay and could grant a stay subject to certain conditions, where appropriate.
- The notice requests comment with a comment period of 30 days.