On August 4, the FDIC announced the launch of its new Office of Supervisory Appeals (OSA), a standalone office that replaces the Supervision Appeals Review Committee as the final level of review of material supervisory determinations. As previously covered by InfoBytes, the FDIC Board of Directors approved revised “Guidelines for Appeals of Material Supervisory Determinations” on January 22, which became effective upon the OSA becoming fully operational. The agency noted that the OSA is independent of the divisions that make supervisory determinations, and that three reviewing officials had been appointed to consider and resolve appeals. An institution may appeal a material supervisory determination to the OSA after the appropriate division director’s review of the determination. According to the agency, the OSA will make independent supervisory determinations “without deferring to the judgments of either party, subject to the reasonableness of and the support for the positions advanced.”

The revised guidelines also expand institutions’ appeal rights to permit appeals of material supervisory determinations underlying certain proposed formal enforcement actions, provided the action is not based on unsafe or unsound practices under Section 8 of the FDI Act, violations of AML/CFT or sanctions compliance laws, or cases where an institution fails to sign an agreement to toll a relevant statute of limitations.