Coutts hits again amid Nigel Farage checking account row

Coutts has stated it doesn’t shut buyer financial institution accounts “solely on the basis of legally held political and personal views” because it comes beneath heavy criticism for terminating its relationship with Nigel Farage.

A variety of Conservatives publicly criticised the financial institution after the previous UKIP and Brexit Party chief claimed his account was closed down as a result of his views did not align with the firm’s “values”.

In mild of the row, the Treasury is making ready to drive banks to give customers three months’ notice of account closures and to supply a full clarification.

Banks additionally face shedding their licences in the event that they shut accounts as a result of they don’t agree with a buyer’s political opinions, amid issues over free speech.

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In a brand new assertion issued on Thursday, a Coutts spokesperson acknowledged the “substantial interest” within the Farage case however stated it couldn’t remark intimately due to buyer confidentiality obligations.

However, they harassed “it is not Coutts’ policy to close customer accounts solely on the basis of legally held political and personal views”.

Coutts added: “Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.

“We recognise the crucial significance of entry to banking. When it grew to become clear that our shopper was unable to safe banking services elsewhere, and as he has confirmed publicly, he was supplied various banking services with NatWest. That provide stands.

“We understand the public concern that the processes for ending a customer relationship, and how that is communicated, are not sufficiently transparent.”

They added: “We welcome the anticipated HM Treasury recommendations in this area, alongside the ask to prioritise the overview of the regulatory guidelines regarding politically uncovered individuals.

“We look ahead to working with the federal government, the regulator and the broader trade to make sure that common entry to banking is maintained.”

On Wednesday, Mr Farage described a doc he claimed showed Coutts closed his bank account due to his political opinions as “prejudiced and nasty”.

The former Brexit Party chief claims he has a 40-page doc that proves Coutts “exited” him as a result of he’s considered “xenophobic and racist” and a former “fascist”.

The former UKIP and Brexit Party chief stated he was shocked by the “vitriol” throughout the doc as he known as for a change in laws to make sure the appropriate of a person to open a checking account.

He beforehand claimed {that a} topic entry request he made to the financial institution, whose purchasers embody members of the Royal Family, reveal it regards him as a PEP or “politically exposed person” – somebody who holds or has held public workplace and subsequently could also be extra prone to bribery or corruption.

Mr Farage claimed 10 banks have refused to open an account in his identify, saying he might “effectively become a non-person” with out a technique of banking.

His complaints have been raised by a number of Conservative MPs, together with former cupboard ministers Sir Jacob Rees-Mogg and David Davis.

In response, the prime minister stated it “wouldn’t be right if financial services were being denied to anyone exercising their right to lawful free speech” and that the federal government supposed to “crack down on this practice”.

And requested in regards to the row right now, the prime minIster’s official spokesperson stated the federal government believed the foundations for banks wanted to “toughened up” so persons are not rejected due to their political opinions.

They stated the federal government was reviewing proof from a session on freedom of expression within the provision of fee companies and that its findings can be revealed quickly.

They added: “We’ve recently passed a law that requires the FCA to review how banks treat what are known as politically exposed persons so we can strike the balance between a customer’s right to free speech and the bank’s right to manage commercial risks.

“And we have additionally requested the FCA to overview whether or not these establishments are assembly its steerage on politically uncovered individuals.

“So we do think there needs to be further work on this, but I won’t get ahead of the work.”

Mr Farage praised the federal government’s motion, saying: “Well done, the government.

“I feel this is without doubt one of the swiftest interventions I’ve seen by authorities for a lot of, a few years.”

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The Financial Conduct Authority has also faced questions over the row.

Appearing in front of the Treasury Select Committee on Wednesday afternoon, FCA chair Ashley Alder said he was not “conscious” of any regulatory rules that could have led to Mr Farage having his bank account terminated.

He said that while it was “essentially as much as them [banks] who they do enterprise with”, FCA-regulated firms “should deal with individuals pretty”.

Nikhil Rathi, the FCA chief executive, also confirmed the regulator would be carrying out a review into PEP “to ensure these guidelines are being utilized proportionally by banks”.

With regards to freedom of speech, Mr Rathi stated anybody who felt they weren’t being handled pretty might complain to the Financial Ombudsman Service.