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Ombudsman

Supervisory Memorandum 1006 addresses the Department’s policy on providing sound supervision of the entities it regulates through fair and unbiased examinations and monitoring. In the event that a material disagreement arises regarding an examination finding or rating, this policy addresses the proper process to request a Reconsideration of an Examination Finding (REF).

How to File an Appeal of an Examination Finding

The Commissioner has designated the Ombudsman to review appeals of examination findings. Through the Ombudsman, a complete review of all the facts and circumstances is performed on behalf of the Commissioner, who makes a final determination based upon the recommendation of the Ombudsman.

The Department's Appeals Policy encourages regulated entities to work directly with Bank and Trust personnel during the examination to attempt to resolve disagreements. Also, the Policy is directed toward appeal of items that have been issued in the examination report, since a dialogue between the regulated entity and the Department during the period before the examination findings are finalized is not considered an "appeal" for the purposes of the Policy and reporting. However, an appeal may be filed with the Ombudsman at any point in the examination process, whether or not it has been informally appealed to Bank and Trust personnel.

To file an appeal with the Ombudsman, senior management of the appealing entity should write to the Ombudsman providing the following details:

  • What is being appealed;
  • Why it is being appealed; and,
  • Information and documentation supporting the entity's analysis and position.

It would also be helpful, but not necessary, if the appeal could describe what efforts have been made to resolve the issue during the examination process.

The Ombudsman will contact the appealing entity to confirm receipt of the appeal and ensure a thorough understanding of the issue. While the research and analysis is being performed, the Ombudsman maintains contact with the entity to keep it apprised of the status of the appeal. Once a final decision has been made by the Commissioner, a determination letter is sent to the appealing entity, along with documentation supporting the decision. The appeals process takes an average of 30 calendar days from the filing of an appeal to the issuance of the determination letter.