The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved a proposal to amend its Guidelines for Appeals of Material Supervisory Determinations. This proposal involves replacing the existing Supervision Appeals Review Committee (SARC) with a new independent office within the FDIC, called the Office of Supervisory Appeals.

Acting FDIC Chairman Travis Hill stated, “Establishing the office as a standalone entity within the FDIC whose sole function is to resolve appeals would ensure that reviewing officials have the capacity to review each case with the proper level of attention and diligence, and would be scalable should the volume of appeals increase.”

The proposed framework suggests that this new office will serve as the final level of review for material supervisory determinations. It will operate independently from the divisions responsible for making supervisory determinations. The office will be staffed by reviewing officials with substantial knowledge of banking and direct experience in the supervisory process, potentially including former government officials and industry professionals. These changes aim to support a robust and independent supervisory appeals process that remains consistent over time.

Public comments on this proposal are invited and must be submitted within 60 days following its publication in the Federal Register.