Fair Audits and Inspections for Regulators’ Exams Act

Finance and Financial Sector

house

senate

president

Introduced on April 18, 2024 by French Hill

Cosponsors

Legislation Details

Amends the Federal Financial Institutions Examination Council Act of 1978 to improve the examination of depository institutions.
Establishes the “Fair Audits and Inspections for Regulators’ Exams Act.”
Requires a final examination report to be provided to a financial institution within 60 days after the exit interview or the provision of additional material information by the institution.
If not subject to a resident examiner program, the exit interview must occur within 9 months of the examination’s commencement, with possible extensions.
Upon request, an appendix listing all examination or factual information relied upon in support of a material supervisory determination must be included with the final report.
Establishes an Office of Independent Examination Review within the Council, headed by an Independent Examination Review Director appointed by the Federal Financial Institutions Examination Council.
The Director is authorized to hire staff, with costs shared equally by the Federal financial institutions regulatory agencies.
The Director’s duties include investigating complaints concerning examinations, holding meetings to discuss examination procedures, reviewing examination procedures for consistency, conducting examination quality assurance, adjudicating supervisory appeals, and reporting annually on reviews and recommendations for improvements.
Financial institutions have the right to an independent review of material supervisory determinations in a final examination report.
Institutions must file a notice for review within 60 days after receiving the final report, identifying the determination in question and reasons for disagreement.
The Director or an administrative law judge will independently review the appeal without deferring to the examiner or agency’s opinions.
Decisions made by the Director on independent reviews are final and bind both the agency and the financial institution.
Financial institutions have the right to judicial review of the Director’s decision in the United States Court of Appeals.
The Director must report annually on actions taken under the independent review section, without disclosing confidential information.
Retaliation against financial institutions for exercising appellate rights is prohibited.
Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to include the Bureau of Consumer Financial Protection and to protect institutions from retaliation for exercising their rights.
Amends the Federal Credit Union Act to include the Bureau of Consumer Financial Protection.
Clarifies the definition of “Federal financial institutions regulatory agencies” to include the Bureau of Consumer Financial Protection for specific sections and adjusts the cost-sharing among agencies.

Last updated 8/8/2024

Amends the Federal Financial Institutions Examination Council Act of 1978 to improve the examination of depository institutions.
Establishes the “Fair Audits and Inspections for Regulators’ Exams Act.”
Requires a final examination report to be provided to a financial institution within 60 days after the exit interview or the provision of additional material information by the institution.
If not subject to a resident examiner program, the exit interview must occur within 9 months of the examination’s commencement, with possible extensions.
Upon request, an appendix listing all examination or factual information relied upon in support of a material supervisory determination must be included with the final report.
Establishes an Office of Independent Examination Review within the Council, headed by an Independent Examination Review Director appointed by the Federal Financial Institutions Examination Council.
The Director is authorized to hire staff, with costs shared equally by the Federal financial institutions regulatory agencies.
The Director’s duties include investigating complaints concerning examinations, holding meetings to discuss examination procedures, reviewing examination procedures for consistency, conducting examination quality assurance, adjudicating supervisory appeals, and reporting annually on reviews and recommendations for improvements.
Financial institutions have the right to an independent review of material supervisory determinations in a final examination report.
Institutions must file a notice for review within 60 days after receiving the final report, identifying the determination in question and reasons for disagreement.
The Director or an administrative law judge will independently review the appeal without deferring to the examiner or agency’s opinions.
Decisions made by the Director on independent reviews are final and bind both the agency and the financial institution.
Financial institutions have the right to judicial review of the Director’s decision in the United States Court of Appeals.
The Director must report annually on actions taken under the independent review section, without disclosing confidential information.
Retaliation against financial institutions for exercising appellate rights is prohibited.
Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to include the Bureau of Consumer Financial Protection and to protect institutions from retaliation for exercising their rights.
Amends the Federal Credit Union Act to include the Bureau of Consumer Financial Protection.
Clarifies the definition of “Federal financial institutions regulatory agencies” to include the Bureau of Consumer Financial Protection for specific sections and adjusts the cost-sharing among agencies.