WBK Industry News - Federal Regulatory Developments

FDIC Enacts New Guidelines for Appeals of Material Supervisory Determinations

The FDIC’s new Guidelines for Appeals of Material Supervisory Determinations took effect on December 6, 2021, with the opening of its new Office of Supervisory Appeals, which replaces the Supervision Appeals Review Committee.

The new Office of Supervisory Appeals is independent of the divisions within the FDIC that have authority to issue material supervisory determinations.  To further promote the independence of the Office, the FDIC recruited externally for the reviewing officials, who are hired for set terms.

The new Guidelines provide that an institution that disputes a material supervisory determination may file a request for review with the FDIC division that made the determination within 60 days of receiving the determination in writing.  The division director will then either make his or her own supervisory determination or refer the request to the Office of Supervisory Appeals.  The division director’s supervisory determination is to be made independently, without deferring to the judgments of either the supervisory staff who made the original determination or the institution.

An institution that disagrees with the division director’s independent supervisory determination may appeal that determination to the Office of Supervisory Appeals within 30 days.  In proceedings before the Office, the burden of proof for all matters lies with the institution, and all communications between the Office and supervisory staff or the appealing institution will be provided to the other party.  These changes are intended to provide a greater level of independence to the Office of Supervisory Appeals.