The American Fintech Council (AFC) has submitted a comment letter in response to the Federal Deposit Insurance Corporation’s (FDIC) proposed rulemaking regarding guidelines for appeals of material supervisory determinations. The AFC, which represents fintech companies and innovative banks, expressed support for the FDIC’s plan to reinstate an independent Office of Supervisory Appeals.
Phil Goldfeder, CEO of the American Fintech Council, said, “The FDIC’s proposal to restore an independent appeals office is an important step toward ensuring banks have a fair, objective, and transparent process when they disagree with supervisory findings. For the financial system to thrive, responsible innovative banks must have confidence that their concerns will be reviewed impartially, without bias, and in a timely manner.”
In its comment letter, the AFC recommended that the FDIC clarify that all material supervisory determinations should be eligible for appeal by banks, including those related to potential enforcement actions. The organization also emphasized the importance of expedited timelines for appeals in urgent cases that could affect a bank’s capital status.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at the American Fintech Council, stated, “Regulatory transparency is essential to responsible innovation, and it’s imperative to further increase crucial accountability in the examination process by ensuring that any material supervisory determinations can be reviewed in an independent manner. Examiners have broad discretion, which is a time-honored and important practice to ensure they are able to conduct oversight effectively. However, by expanding appeal rights and adopting expedited timelines in urgent cases, the FDIC can provide institutions with meaningful recourse, strengthen examiner accountability, and ultimately promote a more accurate and effective system of oversight.”
The AFC commended Acting Chairman Travis Hill for his work on this initiative and reaffirmed its commitment to collaborate with the FDIC on establishing a framework aimed at increasing transparency and fairness within the banking sector.
As a trade association representing large fintech firms and innovative banks involved in embedded finance solutions, AFC’s mission includes promoting transparency and customer-focused innovation in financial services while advocating for sound public policy. Its members aim to enhance competition in consumer finance markets and develop products designed for underserved communities.