Page 1 of 2

BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF SUPERVISION 

AND REGULATION

DIVISION OF CONSUMER AND

COMMUNITY AFFAIRS

SR 20-28

CA 20-14

December 4, 2020

TO THE OFFICER IN CHARGE OF SUPERVISION

 AT EACH FEDERAL RESERVE BANK

SUBJECT: Internal Appeals Process for Material Supervisory Determinations and Policy 

Statement Regarding the Ombudsman for the Federal Reserve System

Applicability: This guidance applies to institutions, including those with $10 billion or less in 

total consolidated assets, that receive a material supervisory determination by the Federal 

Reserve.

On April 1, 2020, the Federal Reserve Board updated its policy statement governing the 

internal appeals process for material supervisory determinations and revised the Board’s 

Ombudsman policy.

1 As explained in the attached policy statement, the Board is committed to 

maintaining an independent, intra-agency process to review appeals of material supervisory 

determinations that complies with Section 309 of the Riegle Community Development and 

Regulatory Improvement Act of 1994.

2 The Board is also committed to maintaining an effective 

Ombudsman to serve as a resource for individuals and institutions that are affected by the 

Federal Reserve’s regulatory and supervisory actions.

1 With the issuance of this SR/CA letter, SR letter 95-18, “Section 309 of the Riegle Community Development and 

Regulatory Improvement Act of 1994, Intra-Agency Appeals Process,” is superseded.

A “material supervisory determination” includes, but is not limited to, any material determination relating to 

examination or inspection composite ratings, material examination or inspection component ratings, the adequacy of 

loan loss reserves and/or capital, significant loan classification, accounting interpretation, Matters Requiring 

Attention, Matters Requiring Immediate Attention, Community Reinvestment Act ratings (including component 

ratings), and consumer compliance ratings. The term does not include any supervisory determination for which an 

independent right of appeal exists or a referral to another government agency.

2 Refer to 12 U.S.C. 4806.
 

Page 2 of 2

Overview of Amended Appeals Process

As set forth in the policy statement, the Board amended its appeals process to improve 

and expedite the process. For instance, the amended appeals process specifies the standards of 

review that the Board will follow, and describes the selection of the review panel members. The

amended appeals process also decreases the processing time for appeals, and provides an

expedited timeline for appeals of determinations that relate to or that would cause an institution 

to become critically undercapitalized under the Prompt Corrective Action framework. Other 

changes to the appeals process include reducing the number of review levels from three under 

the prior process to two, and increasing transparency through public disclosure of final appeal 

decisions in redacted or summary form determined by the Board.

Overview of the Ombudsman Policy

The amended Ombudsman policy formalizes many of the current practices of the 

Ombudsman, including receiving supervisory-related complaints and material supervisory 

determination appeals. In addition, the amended policy clarifies that the Ombudsman may attend 

meetings or deliberations relating to an appeal as an observer, if requested by the institution or 

Federal Reserve staff. The amended policy also formalizes the Ombudsman’s role as the 

decision-maker with respect to claims of retaliation.

Reserve Banks are asked to distribute this letter to the supervised institutions in their 

districts and to appropriate supervisory staff. Questions regarding this letter may be sent via the 

Board’s public website.

3 Questions regarding this letter may also be directed to the Board 

Ombudsman’s Office, 1-800-337-0429.

Michael S. Gibson Eric S. Belsky

Director Director

Division of Supervision Division of Consumer and

and Regulation Community Affairs

Attachment:

• “Internal Appeals Process for Material Supervisory Determinations and Policy Statement 

Regarding the Ombudsman for the Federal Reserve System”

Supersedes: 

• SR letter 95-18, “Section 309 of the Riegle Community Development and Regulatory 

Improvement Act of 1994, Intra-Agency Appeals Process”

3 See http://www.federalreserve.gov/apps/contactus/feedback.aspx
Page 1 of 16

FEDERAL RESERVE SYSTEM 

[Docket No. OP-1696]

Internal Appeals Process for Material Supervisory Determinations and 

Policy Statement Regarding the Ombudsman for the Federal Reserve 

System1

PROCESS FOR APPEALS OF MATERIAL SUPERVISORY 

DETERMINATIONS

The Board is committed to maintaining an independent, intra-agency 

process to review appeals of material supervisory determinations that complies 

with section 309 of the Riegle Community Development and Regulatory 

Improvement Act of 1994, 12 U.S.C. 4806.

The purpose of this document is to establish a comprehensive appellate 

process for material supervisory determinations. In order to ensure that 

institutions will be granted the same appellant rights regardless of the Federal 

Reserve district in which they reside, appeals will be administered using

procedures that are consistent with this process. This process includes an 

accelerated review process to improve its alignment with the Prompt Corrective 

Action (“PCA”) framework under section 38 of the Federal Deposit Insurance 

Act (“FDI Act”.)

A. In General

Any institution about which the Federal Reserve makes a written material 

supervisory determination is eligible to utilize the appeals process. An eligible 

institution includes a state member bank, bank holding company and its 

nonbank subsidiaries, U.S. agency or branch of a foreign bank, Edge and 

agreement corporation, savings and loan holding company, third party 

electronic data processing servicer, systemically important nonbanking 

financial organization identified by the Financial Stability Oversight Council, 

and any other entity examined or inspected by the Federal Reserve. 

1 See Board of Governors of the Federal Reserve System, “Internal Appeals Process for Material Supervisory 

Determinations and Policy Statement Regarding the Ombudsman for the Federal Reserve System,” Federal

Register, vol. 85, pp. 15175-183 (March 17, 2020).
Page 2 of 16

An appeal under this process may be made of any written material 

supervisory determination. A “material supervisory determination” includes, 

but is not limited to, any material determination relating to examination or 

inspection composite ratings, material examination or inspection component 

ratings, the adequacy of loan loss reserves and/or capital, significant loan 

classification, accounting interpretation, Matters Requiring Attention 

(“MRAs”), Matters Requiring Immediate Attention (“MRIAs”), Community 

Reinvestment Act ratings (including component ratings), and consumer 

compliance ratings. The term does not include any supervisory determination 

for which an independent right of appeal exists or a referral to another 

government agency. Excluded actions include, for example, PCA directives

issued pursuant to section 38 of the FDI Act; an action to impose administrative 

enforcement actions under the FDI Act, the Home Owners’ Loan Act of 1933, 

the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Bank 

Holding Company Act of 1956 (“BHC Act”) or other applicable act; a capital 

directive; an order related to approval or denial of a transaction issued pursuant 

to section 3 or 4 of the BHC Act; written notice of a referral to the Attorney 

General pursuant to the Equal Credit Opportunity Act (“ECOA”) or a notice to 

the Secretary of Housing and Urban Development for violations of the ECOA 

or the Fair Housing Act; and determinations made under the Shared National 

Credit Program. 

B. General Procedures for Appealing a Material Supervisory 

Determination

In general, the appeals process is an informal process that is not subject 

to the adjudicative provisions of the Administrative Procedures Act (5 U.S.C. 

554, 556-557). An appeal of a material supervisory determination shall be filed 

and considered pursuant to the following procedures: 

(1) Authorization to File. Any appeal must be approved by the board 

of directors of the eligible institution or by its senior management in 

consultation with its board of directors. Senior management is defined as the 

core group of individuals directly accountable to the board of directors for the 

sound and prudent day-to-day management of the firm, or in the case of a U.S. 

agency or branch of a foreign bank, responsible for the bank’s U.S. operations.

Senior management shall inform the board of directors of the substance of the 
Page 3 of 16

appeal before filing the appeal and shall keep the board of directors informed of 

the status of the appeal.

(2) Timelines and Contents. The institution must file the appeal in 

writing with the Board’s Ombudsman within 30 calendar days of the earlier of 

the date the material supervisory determination was sent electronically, the date 

the institution received the written determination, or the date the Reserve Bank 

received confirmation that the institution received the determination, with a 

copy to the officer in charge of supervision at the appropriate Reserve Bank. 

When the deadline for filing an appeal falls on a weekend or federal holiday, 

the deadline for the appeal shall be the next business day. The institution may 

file a written request for an extension of the time to file an appeal with the 

Ombudsman, which request shall state good cause for granting the extension. 

Such request shall be granted in the sole discretion of the director of the 

appropriate division of the Board in consultation with the Board’s General 

Counsel or his designee. The appeal must include a clear and complete 

statement of all relevant facts and issues, as well as all arguments that the 

institution wishes to present, and must include all relevant and material 

documents that the institution wishes to be considered. Prior to a material 

supervisory determination being made, it is expected that the institution will 

have provided all available information it believes to be relevant to the 

examination staff to assist them in making the determination. Accordingly, 

absent good cause, as determined in the discretion of the initial review panel, 

any facts or data submitted by the institution in connection with the appeal shall 

be limited to those that were made available to examination staff prior to the 

date on which the written material supervisory determination was delivered to 

the institution. 

(3) Distribution of Appeal. After receipt of a request for an appeal, 

the Board’s Ombudsman shall promptly notify the director of the appropriate 

division of the Board and the Board’s General Counsel of the appeal. 

(4) Initial Review Panel. Within ten calendar days of receipt of a 

timely appeal, the director of the appropriate division of the Board or an officer 

designated by the appropriate division director must appoint three Reserve 

Bank employees to serve as an initial review panel to consider the appeal and 

an attorney to advise the initial review panel in the exercise of its 

responsibilities. In appropriate circumstances, the appropriate division director 

may appoint a Board employee as one of the three members of the initial review 
Page 4 of 16

panel. The members of the initial review panel and the appointed attorney must 

not have been substantively involved in any matter at issue; must not directly or 

indirectly report to any person(s) who made the material supervisory 

determination under review; must not be employed by the Reserve Bank that 

made the material supervisory determination under review; and must have 

relevant experience to contribute to the review of the material supervisory

determination. An individual shall be considered to have been substantively

involved in a material supervisory determination if the individual was

personally consulted regarding the issue being determined and provided 

guidance regarding how it should be resolved. The initial review panel shall 

determine all procedural issues regarding the initial review. 

(5) Initial Review Meeting. The initial review panel shall conduct an 

informal appeal meeting if the institution requests such a meeting at the time it 

files its appeal or if the panel, in its discretion, decides to hold such a meeting. 

If such a meeting is to be conducted, the panel should, in consultation with the 

institution, schedule a meeting for a date that is no later than 21 calendar days 

after the date the appeal is received. The panel shall notify the institution in 

writing of the date, time, and place of the meeting. The institution may appear 

at the appeal meeting personally or through counsel to make an oral 

presentation to the panel. Panel members may ask questions of any person 

participating in the meeting. The institution and the Reserve Bank may not 

cross-examine persons participating in the meeting. A verbatim transcript of 

the meeting may be taken if the institution requests a transcript and agrees to 

pay all expenses, and if the initial review panel determines that a transcript 

would assist the panel in carrying out its responsibilities. The meeting provided 

under this process is not governed by formal rules of evidence. No formal 

discovery is required or permitted. The initial review panel may make any 

rulings reasonably necessary to facilitate the effective and efficient operation of 

the meeting. 

(6) Record. The record of the appeal shall at a minimum include the 

original material supervisory determination being appealed, the materials 

submitted by the institution in connection with the appeal, and the materials 

identified by Federal Reserve staff as relevant to the material supervisory 

determination being appealed, including workpapers. In addition, the initial 

review panel may, in its discretion, conduct additional fact finding. For 

example, the initial review panel may supplement the record by soliciting the 

views of outside parties, including staff from the Board, the Reserve Banks, 
Page 5 of 16

other supervisory agencies (for example, in cases of joint examinations or 

inspections), and the Federal Reserve staff who participated in making the 

material supervisory determination being appealed. The entire record of the 

appeal, including the decision of the initial review panel and any meeting 

transcripts or material(s) submitted in connection with any subsequent final 

review, shall be considered confidential supervisory information of the Board.

(7) Standard of Review Applied by Initial Review Panel. The 

initial review panel shall conduct a review of the material supervisory 

determination on appeal. The panel must consider whether the Reserve Bank’s 

material supervisory determination is consistent with applicable laws,

regulations, and policy, and supported by a preponderance of the evidence in 

the record. In doing so, the panel shall make its own supervisory determination 

and shall not defer to the judgment of the Reserve Bank staff that made the 

material supervisory determination though it may rely on any examination 

workpapers developed by the Reserve Bank or materials submitted by the 

institution if it determines it is reasonable to do so. 

(8) Notice of Decision. Within 45 calendar days after the date the 

appeal is received, the initial review panel shall provide written notice of its

decision to the senior management and the board of directors of the institution. 

A copy of the decision will be provided to the director of the appropriate 

division of the Board, the officer in charge of supervision at the appropriate 

Reserve Bank, and the Board’s Ombudsman. The notice of decision shall 

contain a statement of the basis for the initial review panel’s decision to 

continue, terminate, or otherwise modify the material supervisory 

determination(s) at issue or to remand consideration of the material supervisory 

determination at issue to the examiners that made the determination to allow 

them to consider additional evidence presented in connection with the appeal. 

The notice of decision shall identify the information upon which the panel 

relied in reaching its conclusion, and the panel shall promptly provide that 

information to the institution upon the institution’s request to the extent 

permitted by law. Such request must be made within seven calendar days of 

receipt of the notice of decision. The notice of decision shall also indicate that 

the institution may request a final review as set forth in this subpart by filing a 

written request with the Board’s Ombudsman. The initial review panel may 

extend the period for issuing a decision by up to 30 calendar days if the panel 

determines that the record is incomplete and additional fact-finding is necessary 

for the panel to issue a decision. 
Page 6 of 16

(9) Use of Confidential Supervisory Information. If the Reserve 

Bank or the Board has confidential supervisory information from another 

regulated institution that is pertinent to the appeal, they may elect to use that 

information, provided that the information is entered into the record for the 

appeal and provided to the appealing institution, subject to limitations on 

disclosure, including those imposed by the Board’s applicable regulations,2 and 

redaction of all information not relevant to the appeal. 

(10) Request for Final Review. Within 14 calendar days after notice 

of decision by the initial review panel, the institution, at the direction of its 

board of directors or senior management in consultation with the board of 

directors, may appeal that decision to a final review panel by filing a written 

request for final review with the Board’s Ombudsman, with a copy to the 

officer in charge of supervision at the appropriate Reserve Bank. Senior 

management shall inform the board of directors of the substance of the appeal 

before filing the appeal and shall keep the board of directors informed of the 

status of the appeal. The request for final review must state all the reasons, 

legal and factual, the institution disagrees with the initial review panel’s

decision. The institution may file a written request for an extension of the time 

to file an appeal with the Ombudsman, which request shall state good cause for 

granting the extension. The decision to grant such a request shall be in the sole 

discretion of the director of the appropriate division of the Board in consultation 

with the Board’s General Counsel or his designee.

(11) Waiver of Final Review. Failure to timely request final review in 

a manner consistent with this process shall constitute a waiver of the 

opportunity for final review, and the decision of the initial review panel shall 

constitute a final and unappealable material supervisory determination.

(12) Distribution of Final Review Request. After receipt of a request 

for final review, the Board’s Ombudsman shall promptly notify the director of 

the appropriate division of the Board and the Board’s General Counsel of the 

request for final review. 

(13) Final Review Panel. When an institution files a request for final 

review, the director of the appropriate division of the Board shall promptly 

2 See 12 CFR 261.20.
Page 7 of 16

appoint three individuals to serve as a final review panel to permit completion 

of the appeal within the applicable period. The final review panel shall include

at least two Board employees, at least one of whom must be an officer of the 

Board at the level of associate director or higher. The Board’s General Counsel 

shall appoint an attorney to advise the final review panel in the exercise of its 

responsibilities. The members of the final review panel and the appointed 

attorney must not be employed by the Reserve Bank that made the material 

supervisory determination under review; must not have been members of the 

initial review panel; and must not have been personally consulted regarding the 

issue being determined and provided guidance regarding how it should be 

resolved, or directly or indirectly report to the person(s) who made the material 

supervisory determination under review. The final review panel shall determine 

all procedural issues regarding the final review.

(14) Final Review Meeting. The final review panel may determine in 

its discretion to have an informal appeal meeting at which a representative of 

the institution or counsel may appear personally to make an oral presentation to 

the panel. No facts may be introduced in this meeting that are not contained in 

the record upon which the initial review panel made its decision. In the event 

the panel decides to have a meeting with the appealing institution, panel 

members may ask questions of any person participating in the meeting. The 

institution may not cross-examine persons participating in the meeting. A 

verbatim transcript of the meeting may be taken at the cost of the Board if the 

final review panel determines that a transcript would assist the panel in carrying 

out its responsibilities. A meeting provided under this process is not governed 

by formal rules of evidence. No formal discovery is required or permitted. The 

final review panel may make any procedural rulings reasonably necessary to 

facilitate the effective and efficient operation of the meeting. 

(15) Scope of Final Review. The scope of the final review shall be 

confined to the record upon which the initial review panel made its decision.

(16) Standard of Review of Final Review. The final review panel 

shall determine whether the decision of the initial review panel is reasonable. 

In reaching this determination, the panel should consider whether the decision 

was based on a consideration of the applicable law, regulations, and policy, and 

whether there has been a clear error of judgment. The final review panel may 

affirm the decision of the initial review panel even if it is possible to draw a 

contrary conclusion from the record presented on appeal.
Page 8 of 16

(17) Notice of Final Review Decision. Within 21 calendar days of the 

filing of a request for final review, the director of the appropriate division of the 

Board shall provide written notice of the decision of the final review panel to 

the senior management and the board of directors of the institution. The final

review panel may continue, terminate, or otherwise modify the material 

supervisory determination(s) at issue or remand consideration of the material 

supervisory determination at issue to the examiners who made the 

determination to allow them to consider additional evidence presented in 

connection with the appeal. The notice of decision shall contain a statement of 

the basis for the final review panel’s decision. A copy of the decision will be 

provided to the director of the appropriate division of the Board, the officer in 

charge of supervision at the appropriate Reserve Bank, and the Board’s 

Ombudsman. A copy of the decision will be published on the Board’s public 

website as soon as practicable, and the published decision will be redacted to 

avoid disclosure of exempt information. In cases in which redaction is deemed 

insufficient to prevent improper disclosure, the published decision may be 

presented in summary form. The final review panel may extend the period for 

issuing a decision by up to 30 calendar days if the panel determines that, based

on the facts and circumstances of the appeal, an extension is appropriate.

 

(18) Ombudsman Participation. The Board’s Ombudsman may 

attend, as an observer, meetings or deliberations relating to the appeal at either 

level if requested by either the institution or System personnel. The 

Ombudsman will not have substantive involvement in or act as a decisionmaker with respect to the appeal.

C. Expedited Procedures for Appealing a Material Supervisory 

Determination

When a material supervisory determination relates to or causes an

institution to become critically undercapitalized, as defined by section 38 of the 

FDI Act, the review of any appeal of that supervisory determination will be 

processed on an expedited basis. 

Notwithstanding any other provision in this process, a matter processed 

under expedited review will be subject to the same policies that govern all 

appeals except that the initial review panel will issue a decision within 35
Page 9 of 16

calendar days following the date the appeal is received (such period may be 

extended by up to an additional 7 calendar days if the initial review panel 

decides that such time is required to supplement the record and to consider any 

additional information received), the institution shall have 7 days to file an 

appeal of the initial review panel’s decision, and the final review panel will 

issue a decision within 10 calendar days. 

D. Effect of Appeal on Material Supervisory Determinations 

A material supervisory determination shall remain in effect while under 

appeal unless and until such time as it is modified or terminated through the 

appeals process. An appeal does not prevent or suspend the Federal Reserve or 

any other appropriate agency from taking any supervisory or enforcement 

action–either formal or informal–it deems appropriate to discharge the agency’s 

supervisory responsibilities. In such cases, the rights of appeal provided for in 

the statutes and regulations concerning those actions shall govern. 

In addition, an appeal does not prevent or suspend the operation of the 

PCA framework under section 38 of the FDI Act, prevent or suspend an 

appropriate authority from appointing a receiver for the institution or otherwise 

causing the closure of an institution, or prevent or suspend an appropriate 

authority from taking any other action under the PCA framework. If the 

institution is placed into receivership while an appeal is outstanding, the appeal 

will be considered moot and will not be completed. 

E. Safeguards Against Retaliation 

Neither the Federal Reserve nor any employee of the Federal Reserve 

may retaliate against an institution or person, including based on the filing or 

outcome of an appeal under this process. In accordance with longstanding 

Federal Reserve practice, the appeals framework is intended to foster an 

environment where concerns and issues may be freely and openly discussed.

Each Reserve Bank shall provide institutions with notice of the Board’s 

anti-retaliation policy in connection with each Federal Reserve led examination.

An institution that believes that it has suffered retaliation or any other 

form of unfair treatment is encouraged to contact the appropriate Reserve Bank,

and may file a claim of retaliation with the Board’s Ombudsman. The 
Page 10 of 16

Ombudsman may attempt to resolve a claim of retaliation informally by 

engaging in discussions with the concerned institution and the appropriate 

Board or Reserve Bank staff. 

Nothing in this guidance is intended to prevent the Ombudsman from 

initiating a factual inquiry into alleged retaliation at any time. The Ombudsman 

may initiate a factual inquiry into a claim of retaliation, at any time, by

providing notice to the director of the appropriate division of the Board and

appropriate Board committee, and the officer in charge of supervision at the 

appropriate Reserve Bank. As part of the inquiry, the Ombudsman may collect 

and review documents, interview witnesses, and consult Board and Reserve 

Bank staff with subject matter expertise. The Ombudsman also may request 

that the director of the appropriate division of the Board authorize or assign 

such additional resources as necessary to assist the Ombudsman in fully 

reviewing the matter. 

Upon the completion of a factual inquiry into a claim of retaliation, if the 

Ombudsman concludes that retaliation has occurred, the Ombudsman will 

forward the claim of retaliation, along with the Ombudsman’s factual findings 

to the director of the appropriate division of the Board. These officials will take 

appropriate action consistent with the Board’s or relevant Reserve Bank’s 

policies and procedures to resolve the matter. In addition, to prevent future 

retaliation for an appeal, the Ombudsman may recommend to the director of the

appropriate division of the Board that the next examination of the institution or 

review that may lead to a material supervisory determination exclude personnel 

involved in the claim of retaliation. The division director(s) will make the final 

decision as to whether any examination staff should be excluded.

The Board’s Ombudsman will contact institutions within six months after 

a material supervisory determination appeal has been decided to inquire 

whether the institution believes retaliation has occurred. 

F. Availability of Procedures 

The Federal Reserve, through the Board and Reserve Banks, shall make 

this process readily available on its public website and to any member of the 

public who requests it.
Page 11 of 16

Ombudsman for the Federal Reserve System

Policy Statement

Section 309 of the Riegle Community Development and Regulatory 

Improvement Act of 1994, 12 U.S.C. 4806, requires each of the Federal 

banking agencies to appoint an Ombudsman. Section 309 provides that the 

Ombudsman:

(1) Is to act as a liaison between the agency and any affected person with 

respect to any problem such party may have in dealing with the agency 

resulting from the regulatory activities of the agency; and 

(2) Is to assure that safeguards exist to encourage complainants to come 

forward and preserve confidentiality. 

Mission of the Ombudsman. The Ombudsman is charged with performing 

three major functions: (1) serving as a facilitator and moderator for the fair and 

timely resolution of complaints related to the Federal Reserve System’s 

regulatory activities; (2) reporting to the Board on issues that are likely to have 

a significant impact on the Federal Reserve System’s missions, activities, or 

reputation that arise from the Ombudsman’s review of complaints, such as 

patterns of issues that occur in multiple complaints; and (3) receiving, 

reviewing, and deciding claims of retaliatory conduct by Federal Reserve 

System staff. The Ombudsman also serves as the initial recipient for appeals of 

material supervisory determinations and plays a role in resolving appeals of 

some consumer complaints. In addition, the Ombudsman ensures that 

safeguards exist to encourage complainants to come forward and to protect 

confidentiality. 

Serving as a Complaint Facilitator. The Ombudsman assists institutions with 

issues and questions related to Reserve Bank or Board regulatory activities. In 

doing so, the Ombudsman shall operate independently of the supervisory 

process to the extent necessary to ensure that appropriate safeguards exist to 

encourage complainants to come forward and preserve confidentiality. 

In situations where the Board has not established a process for addressing a 

certain type of question or complaint, the Ombudsman is available to facilitate 

the resolution of the question or complaint. Although the Ombudsman does not 
Page 12 of 16

have decision-making authority regarding any substantive matters, including 

supervisory determinations and regulatory action (other than for retaliation 

claims), the Ombudsman is available to assist institutions, and particularly 

community banks, in locating the correct Federal Reserve System staff person 

to address or resolve such a question or complaint and may coordinate meetings 

and facilitate discussions between the institution and System staff, including 

senior officials, as necessary. In order to facilitate this process, the 

Ombudsman may investigate the situation in order to identify the relevant facts 

and circumstances. The Ombudsman may also participate in meetings or 

discussions related to the matter if requested by either the institution or System 

staff, and may require updates from System staff, as appropriate, until the 

matter is resolved. If the Ombudsman believes such a complaint has not been 

satisfactorily addressed, the Ombudsman may raise the matter with the 

appropriate division director or Board committee, as appropriate.

When an issue is brought to the attention of the Ombudsman for which the 

Board’s rules or procedures provide an avenue of appeal or another appropriate 

forum for resolution, the Ombudsman will explain the process to the 

complaining party, and direct the party to the appropriate appeals process or 

forum for the complaint.3

 In addition, the Ombudsman is also available to 

facilitate informal discussions between a potential appellant and the appropriate 

Reserve Bank or Board staff in order to explore solutions before an appeal is 

filed. Such discussions do not stay or otherwise alter any of the deadlines under 

the Board’s rules or procedures.

The Ombudsman will serve as the initial recipient for an appeal of a material 

supervisory determination and may attend, as an observer, meetings or 

deliberations relating to the appeal if requested by either the institution or 

System personnel. In any event, the Ombudsman will not have any substantive 

involvement in or act as a decision-maker with respect to the appeal. 

3 For example, the Ombudsman may explain some of the existing mechanisms for resolutions 

of complaints, such as: material supervisory determinations pursuant to section 309(a) of the 

Riegle Act; actions delegated to the Reserve Banks or Board staff pursuant to 12 CFR Part 

265; prompt corrective action directives under section 38 of the FDI Act; denials or partial 

denials of Freedom of Information or Privacy Act requests; issuance of capital directives 

pursuant to 12 CFR 263.80-263.85; decisions with respect to applications; and matters within 

the jurisdiction of the Board's Inspector General or Federal or State investigatory or 

prosecutorial authorities.
Page 13 of 16

Providing Feedback on Patterns of Issues. The Ombudsman is in a unique 

position to identify and report patterns of issues arising from complaints related 

to Reserve Bank or Board regulatory activities. The Ombudsman will track 

inquiries and complaints based on relevant characteristics, such as geographic 

location, scope, policy implications, and final disposition, to help identify any 

such trends, including trends that implicate differently sized institutions 

disproportionately. This tracking will be conducted in a manner designed to 

preserve confidentiality of the complainant to the maximum extent possible. As 

appropriate, the Ombudsman will report findings of patterns of issues to the 

appropriate Board committee or division director and Reserve Bank or Board 

staff. The Ombudsman will also report any issue stemming from a complaint 

that is likely to have a significant impact on the Federal Reserve System’s 

mission, activities, or reputation.

Retaliation Claims by Supervised Persons. The Board does not tolerate 

retaliation by Federal Reserve System staff against a supervised institution or its 

employees (“supervised persons”). Retaliation is defined as any action or 

decision by Reserve Bank or Board staff that causes a supervised person to be 

treated differently or more harshly than other similarly situated institutions 

because the supervised person attempted to resolve a complaint by filing an 

appeal of a material supervisory determination or utilized any other Board 

mechanisms for resolving complaints. Retaliation includes, but is not limited 

to, delaying or denying action that might benefit a supervised person without a 

sound supervisory reason or subjecting a supervised institution to heightened 

examination standards without a sound supervisory reason. 

The Ombudsman is authorized to receive, review, and determine the merits of 

complaints of retaliatory conduct by Reserve Bank or Board staff. The 

Ombudsman may attempt to resolve retaliation claims informally by engaging 

in discussions with the concerned supervised person and the appropriate Board 

or Reserve Bank staff. If a complaint cannot be resolved informally, the 

Ombudsman may initiate a full investigation into the underlying facts and 

circumstances. 

To commence a factual investigation of a complaint of retaliatory conduct, the 

Ombudsman should provide written notice to the appropriate Board committee 

and division director and the appropriate Reserve Bank officer in charge of 

supervision. As part of the investigation, the Ombudsman may, among other 

things, collect and review documents, interview witnesses, and seek any other 
Page 14 of 16

relevant information. The Ombudsman may also consult Board and Reserve 

Bank staff with subject matter expertise. Where necessary, the appropriate 

Board committee or division director may authorize or assign such additional 

resources as may be needed to assist the Ombudsman in fully reviewing the 

matter. 

Upon completion of the factual investigation of a complaint of retaliatory 

conduct, the Ombudsman will decide whether a member of Federal Reserve 

System staff retaliated, as defined above. The Ombudsman will report this 

determination to the appropriate Board committee or Governor and division 

director and the appropriate Reserve Bank officer in charge of supervision and 

may make recommendations for resolution of the matter to those parties. In 

addition, to prevent future retaliation for an appeal, the Ombudsman may 

recommend to the appropriate division director(s) that the next examination of 

the institution or review that may lead to a material supervisory determination 

exclude personnel involved in the claim of retaliation. The division director(s) 

will make the final decision as to whether any examination staff should be 

excluded. However, the Ombudsman shall not make recommendations 

regarding disciplinary action against a Federal Reserve System staff member. 

The appropriate staff will consider further action consistent with the Board’s 

and relevant Reserve Bank’s policies and procedures. The Ombudsman’s 

determination regarding retaliation will be communicated in writing to the 

supervised person.

To further ensure that supervised persons are not subjected to retaliation, as 

defined above, the Ombudsman will contact a supervised institution within six 

months after an appeal has been decided to inquire whether the institution 

believes retaliation occurred. Where possible, the Ombudsman will also 

contact the institution after the next examination following an appeal. In the 

event an institution complains of retaliation, the Ombudsman will initiate the 

process outlined above to informally review the matter or initiate a factual 

investigation.

Consumer Complaints and Appeals. Independent of the Ombudsman 

function, the Federal Reserve System operates a consumer complaint and 

inquiry program to assist members of the public who are experiencing problems 

with their financial institution. If the Ombudsman receives a consumer 

complaint directly, the Ombudsman will refer the complaint to the Board’s

Division of Consumer and Community Affairs (“DCCA”) to determine 
Page 15 of 16

handling and send appropriate consumer complaints to the Federal Reserve 

Consumer Help Center (“FRCH”) for processing. 

A request for an independent review of a consumer complaint previously 

investigated by a Reserve Bank is treated as an appeal. Consumers should be 

advised that they can file an appeal through FRCH or with the Ombudsman if 

the consumer requests confidential treatment of the appeal or prefers that the 

Ombudsman handle the appeal. 

If an appeal is received by the Ombudsman, he or she will consult with DCCA 

to determine who will handle the appeal, unless the consumer has requested 

confidential treatment or that the Ombudsman’s Office handle the appeal. In 

many instances, DCCA will be responsible for investigating and responding to 

the appeal. For the appeals referred to DCCA by the Ombudsman, DCCA will 

consult with the Ombudsman during the appeal investigation to help ensure that 

the matter is fully and fairly addressed and provide a final copy of the response

letter to the Ombudsman. 

The Ombudsman handles appeals seeking further investigation of DCCA’s 

handling of an initial appeal, appeals where the consumer requests confidential 

treatment, and appeals where the consumer requests that the Ombudsman’s 

Office handle the initial appeal. The Ombudsman may handle other appeals, as 

determined in collaboration with DCCA. The Ombudsman will send an 

acknowledgement letter for each appeal it receives. 

With respect to appeals seeking further investigation of DCCA’s handling of an 

initial appeal or where the consumer requests that the Ombudsman handle the 

appeal, the Ombudsman will typically consult with DCCA during the 

investigation. For appeals where the consumer requests confidential treatment, 

the Ombudsman typically will not consult with DCCA during the investigation. 

For all appeals the Ombudsman handles, the Ombudsman will review the 

matter. In doing so, the Ombudsman will collect and review the complaint 

documents from DCCA and seek any other relevant information, unless 

confidential treatment is requested. The Ombudsman may also consult Board 

and Reserve Bank staff to discuss the details of the previous complaint 

investigations. The Ombudsman is responsible for responding to the 

complainant with its determination. As appropriate, the Ombudsman will 

contact the appropriate Board division director and Reserve Bank staff with 

feedback or concerns.
Page 16 of 16

Safeguards. These policies, processes, and practices are intended as safeguards 

to encourage complainants to come forward with issues or complaints related to 

the Federal Reserve System’s supervisory activities.

To the extent possible, the Ombudsman will honor requests to keep confidential 

the identity of a complaining party. It must be recognized, however, that it may 

not be possible for the Ombudsman to resolve certain complaints, including 

complaints of retaliation, if the Ombudsman cannot disclose the identity of the 

complaining party to other members of Federal Reserve staff. 

Procedures. A party may contact the Ombudsman at any time regarding 

concerns or issues resulting from the regulatory activities of the Board or the 

Reserve Banks by calling 1-800-337-0429, by sending a fax to 202-530-6208, 

by writing to the Office of the Ombudsman, Board of Governors of the Federal 

Reserve System, Washington, D.C. 20551, or by sending an email to 

Ombudsman@frb.gov.

By order of the Board of Governors of the Federal Reserve System, March 12, 2020.

/s/Ann Misback, 

Secretary of the Board.