Federal Reserve Board Proposes Revised Process for Appeal of Material Supervisory Determinations: New Guidelines Would Reduce Levels of Appeal From Three to Two and Expand the Ombudsman’s Role in Safeguarding Institutions From RetaliationSullivan & Cromwell LLP - March 2, 2018
On February 27, 2018, the Board of Governors of the Federal Reserve System proposed new guidelines streamlining the process for handling internal appeals of material supervisory determinations and an updated Ombudsman policy that would enhance the role of the Ombudsman, particularly with respect to claims of retaliation. The proposed guidelines would reduce the levels of appeals from three to two, provide greater assurance of the independence of the appeals process, and provide standards for review of supervisory determinations at each level. The proposed guidelines represent the latest in a series of recent Federal Reserve proposals to improve the functioning of the supervisory process. The Federal Reserve is accepting comments on the proposed new guidelines until April 30, 2018.