The Federal Deposit Insurance Corporation has launched its new Office of Supervisory Appeals, announcing the panel of independent officials who will lead the body.
The office replaces the Supervision Appeals Review Committee as the final level of review for material supervisory determinations made by the agency.
The FDIC first proposed replacing the SARC with an independent, standalone office back in 2020, citing a need for officials whose sole responsibility would be reviewing supervisory appeals.
The office had previously become fully operational under an earlier iteration, but was disbanded following a leadership change at the agency before it had heard a single appeal.
The agency announced the formation of the new office in January, and it has now become fully operational with a panel of reviewing officials in place.
“The Office is independent of the Divisions that make supervisory determinations,” the FDIC said, outlining the structural separation designed to ensure impartiality in the appeals process.
According to the agency, “The Office 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 FDIC also confirmed that institutions’ appeal rights have been expanded, now permitting appeals in certain cases when an enforcement action is proposed or pending.
Each panel must include at least one reviewing official with bank supervisory experience and at least one with industry experience, with all officials subject to confidentiality and conflict of interest requirements.
The FDIC announced the appointment of three individuals to serve as reviewing officials, each bringing significant experience across supervision, regulation, and banking.
Tim Ayala has served as a banking executive and FDIC senior leader with experience covering bank supervision, governance, compliance, and regulatory strategy across his career.
Most recently, Ayala served as Executive Vice President and Chief Risk Officer with Pinnacle Financial Partners, a $54 billion financial institution based in Nashville, Tennessee.
Duke Sheow brings more than three decades of experience in financial institution supervision, enterprise risk management, and banking regulation across the public and private sectors.
Most recently, Sheow served as Senior Managing Director at PwC, having previously held executive positions with several banks throughout his career.
Sheow also served as a senior commissioned examiner with both the FDIC and the Federal Reserve Bank of San Francisco, and was a key member in developing the Federal Reserve’s Fintech Supervisory Program.
His experience includes evaluating material supervisory determinations, participating in enforcement and civil money penalty matters, advising bank boards, and developing supervisory programmes addressing emerging risks.
The FDIC issued a Financial Institution Letter providing specific instructions for FDIC-supervised institutions seeking to appeal material supervisory determinations to the new office.