More revisions of FDIC guidelines for appeals of material supervisory determinations out for comment until Nov. 21

A proposal that, among other things, would add the federal bank deposit insurer’s ombudsman to the agency’s Supervisory Appeals Review Committee (SARC) as a nonvoting member is out for public comment until Nov. 21, according to a Federal Register notice published Friday.

The proposal, issued Tuesday by the Federal Deposit Insurance Corp. (FDIC) Board, would make further revisions to the  guidelines that took effect this May on appeals of material supervisory determinations to revised guidelines, and on which the agency sought further input. In this round, the FDIC proposes to:

  • Expand and clarify the role of the FDIC Ombudsman in the supervisory appeals process. The proposal would add the ombudsman to the Supervision Appeals Review Committee (SARC) as a non-voting member. The ombudsman would monitor the supervision process following an institution’s submission of an appeal under the guidelines. “Serving as a non-voting member of the SARC would allow the Ombudsman to remain independent of the supervision function,” the notice states. “As a non-voting member, the Ombudsman would be expected to attend SARC meetings, participate in discussions, and offer views, opinions, and advice to the SARC during its deliberations based on the Ombudsman’s perspective as a neutral advocate for a fair process, and as a party independent of the supervisory process.”
  • Require that materials considered by the SARC be shared with both parties to the appeal, subject to applicable legal limitations on disclosure and oversight by the ombudsman. “The Ombudsman would verify that both parties have received all materials considered by the SARC,” it states.
  • Allow IDIs (insured depository institutions) to request a stay of a material supervisory determination while an appeal is pending. The FDIC said it has previously stated this is available from the relevant division director, but amending the guidelines to expressly permit IDIs such requests “would better ensure that IDIs are aware of the ability to request a stay.” The notice states that such a request must be in writing and include the reasons for the stay. “The Division Director would have discretion to grant a stay, and would generally decide whether a stay is granted within 21 days of receiving the IDI’s request,” it states. “The Division Director could grant a stay subject to certain conditions where appropriate; for example, a stay could be time-limited.”

Reg lookup: Guidelines for Appeals of Material Supervisory Determinations