FDIC Launches Office of Supervisory Appeals to Review Material Determinations

• The Federal Deposit Insurance Corporation (FDIC) has launched the Office of Supervisory Appeals (OSA), a new office within the agency that will review and resolve appeals of material supervisory determinations.
• Three individuals have been appointed to serve as reviewing officials: Tim Ayala, John Conneely, and Duke Sheow.
• The OSA provides an additional layer of review for material supervisory determinations, which may impact banks' compliance obligations and potential appeal strategies.
• Lawyers should be aware of the procedures and timelines outlined in the FDIC's Guidelines for Appeals of Material Supervisory Determinations and the Financial Institution Letter to ensure that their clients are properly prepared to navigate the appeals process.

The launch of the OSA is a significant development for banks and their lawyers, as it provides an additional layer of review for material supervisory determinations.

The Federal Deposit Insurance Corporation (FDIC) has launched the Office of Supervisory Appeals (OSA), a new office within the agency that will review and resolve appeals of material supervisory determinations. The OSA replaces the Supervision Appeals Review Committee as the final level of review for these determinations, which are critical to banks' compliance obligations and potential appeal strategies. The launch of the OSA is the result of amendments to the FDIC's Guidelines for Appeals of Material Supervisory Determinations, approved by the FDIC Board of Directors on January 22, 2026.

The OSA will be comprised of independent officials who will consider appeals brought before the agency. Three individuals have been appointed to serve as reviewing officials: Tim Ayala, John Conneely, and Duke Sheow. Mr. Ayala has extensive experience in bank supervision, governance, compliance, and regulatory strategy, having served as a banking executive and FDIC senior leader. Mr. Conneely is a former FDIC senior executive with 35 years of experience in bank supervision and regulation. Mr. Sheow brings more than three decades of experience in financial institution supervision, enterprise risk management, and banking regulation across the public and private sectors.

The launch of the OSA is a significant development for banks and their lawyers, as it provides an additional layer of review for material supervisory determinations. These determinations are critical to banks' compliance obligations and potential appeal strategies. The FDIC's Guidelines for Appeals of Material Supervisory Determinations outline the process for appealing these determinations, which includes submitting a written request to the OSA. The guidelines also provide specific instructions for FDIC-supervised institutions seeking to appeal material supervisory determinations.

The FDIC has issued a Financial Institution Letter to provide further guidance on the appeals process. This letter outlines the procedures and timelines for appealing material supervisory determinations, as well as the role of the OSA in reviewing these appeals. The letter also emphasizes the importance of timely submission of appeals to avoid any potential delays or consequences.

The launch of the OSA is a key development in the FDIC's efforts to enhance transparency and accountability in its regulatory processes. By providing an additional layer of review for material supervisory determinations, the OSA aims to ensure that banks are treated fairly and consistently.

The launch of the OSA has significant implications for lawyers representing banks and financial institutions. The new office provides an additional layer of review for material supervisory determinations, which may impact their clients' compliance obligations and potential appeal strategies. Lawyers should be aware of the procedures and timelines outlined in the FDIC's Guidelines for Appeals of Material Supervisory Determinations and the Financial Institution Letter to ensure that their clients are properly prepared to navigate the appeals process.

The OSA also highlights the importance of timely submission of appeals, as delays or failure to comply with the guidelines may result in consequences. Lawyers should advise their clients to carefully review the guidelines and letter to understand the requirements for appealing material supervisory determinations. By doing so, they can ensure that their clients are treated fairly and consistently by the FDIC.

Lawyers should be aware that the new Office of Supervisory Appeals at the FDIC provides an additional layer of review for material supervisory determinations, which may impact their clients' compliance obligations and potential appeal strategies.

Source: Original reporting via FDIC press release