Debanking poses risk to free speech, says Chancellor as he asks regulator for probe
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hancellor Jeremy Hunt has requested the City watchdog to look into the extent of debanking, as he stated the follow poses a “threat” to free speech.
It comes as banks face widespread reforms over account closures, after the Nigel Farage row that final week led to the resignation of the highest bosses at NatWest and Coutts.
The former Ukip chief stated his checking account was unfairly shut down by Coutts, owned by NatWest Group, as a result of it didn’t agree together with his political opinions.
Mr Farage’s marketing campaign towards account closures has obtained assist from ministers, with Mr Hunt expressing concern over how many individuals are affected.
The Chancellor wrote to the Financial Conduct Authority on Thursday to “urgently investigate how widespread this practice is, and put a stop to it”.
He advised broadcasters: “I’m worried that it may exist more than we had thought.
“And the reason I’m worried is because free speech is a fundamental human right. And you can agree or disagree with Nigel Farage but everyone wants to be able to express their opinions.
“But in today’s society you need a bank account to function and so a threat to be debanked, as the word is now widely used, is a threat to your right to express your opinions.
“So we have regulations, I think it’s regulation 18 of the payment accounts regulations, that ban this so-called debanking of people for their political views.
“I’ve written to the regulator, which is the Financial Conduct Authority. They have the right to fine banks very large sums of money if they find this practice is widespread.
“I want to know if it is and I want to know what they’re doing about it and they said they’ll get back to me by September.”
In his letter to the regulator, shared by the Chancellor on Twitter, he urged it to progress its evaluation urgently and to think about the size and traits of consumers affected; the drivers of those selections, what monitoring and enforcement motion the FCA has taken, and the pace and the kind of recourse accessible to prospects.
“Based on these findings and in light of any steps the FCA determines it appropriate to take within its existing powers, the Government will determine whether further action is necessary to ensure nobody is being unfairly denied banking facilities,” he wrote.
Mr Farage responded by tweeting: “The Chancellor has written to the FCA about my case and the issue of de-banking. Thank you @Jeremy_Hunt.”
The ex-MEP this week stated Coutts has supplied to reinstate his private and enterprise accounts, whereas he’s additionally looking for compensation from the personal financial institution.
NatWest has introduced an unbiased evaluation, with legal professionals wanting on the closure of Mr Farage’s account and different situations of debanking by Coutts.
NatWest’s Dame Alison Rose resigned as chief government after acknowledging a “serious error of judgment” by discussing with a BBC journalist Mr Farage’s relationship with Coutts.