The FDIC on Tuesday issued a notice requesting feedback on its proposed amendments clarifying and expanding the role of the agency’s ombudsman in the supervisory appeals process. The notice follows the agency’s approval of guidelines reinstating the Supervision Appeals Review Committee, or SARC, earlier this year.
Specifically, the notice proposes the agency’s ombudsman serve as a non-voting member of the SARC to monitor the supervision process following an institution’s appeal. Additionally, the proposal requires that materials considered by the SARC be shared with both parties to the appeal and allows institutions to request a stay of a supervisory action or determination while an appeal is pending.
ABA and five other banking trade groups previously shared their concerns with the FDIC’s decision to eliminate the Office of Supervisory Appeals and reconstitute the SARC. Unlike the SARC, the associations noted that the OSA had the ability to make its determinations independent of influence by the FDIC’s leadership.
Comments are due 30 days after the FDIC notice is published in the Federal Register.