Banks to be summoned to debate reforms after Farage-Coutts account closure row
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Treasury minister is reportedly to warn banks he’ll “take all action necessary” to crack down on accounts being closed in response to clients’ political beliefs.
Andrew Griffith, financial secretary to the Treasury, is ready, in response to a number of reviews, to ship a letter to 19 financial institution chiefs on Monday inviting them for a gathering relating to modifications the Government is making to higher defend clients.
It comes after former UK Independence Party (Ukip) chief Nigel Farage found his checking account was shut down by non-public financial institution Coutts, owned by NatWest Group, as a result of it discovered his public statements did “not align” with its values.
The Treasury introduced final week that banks should clarify why they’re shutting down an account below the brand new guidelines.
Previously they haven’t had to offer a rationale for doing so.
I’m calling a roundtable … to listen to your views on the way you and your corporations will guarantee clients can entry fee accounts with out concern of being de-banked
The discover interval for a pressured account closure can be prolonged from 30 days to 90 days.
The Government stated the extension ought to give clients extra time to problem the choice by means of the Financial Ombudsman Service or discover a substitute financial institution.
City minister Mr Griffith is reportedly making ready to inform financial institution and constructing society chief executives that the current allegations of “client de-banking” have “raised significant concern in both Houses of Parliament”.
“The Government is unequivocal that banks and other payment service providers – which occupy a privileged place in society – should not be terminating contracts of payment account facilities on grounds relating to users’ exercising of their right to lawful freedom of expression,” the Conservative minister is predicted to inform financial institution leaders.
“The Government strongly supports this fundamental right afforded to all people in British society and will take the action necessary to protect it.”
He is ready so as to add: “I am calling a roundtable at the earliest opportunity to hear your views on how you and your firms will ensure that customers can access payment accounts without fear of being de-banked for their lawful expression, and necessary actions to be taken to implement the reforms announced.”
Mr Farage, the previous Brexit Party chief and MEP turned broadcaster, acquired an apology from NatWest chief govt Dame Alison Rose for the “deeply inappropriate comments” made about him in official papers.
Historic financial institution Coutts, which closed Mr Farage’s account earlier this yr, cited his retweet of a Ricky Gervais joke about transwomen and his friendship with tennis participant Novak Djokovic, who’s against Covid vaccinations, to flag considerations that he’s “xenophobic and racist” in paperwork seen by MailOnline.
The closure of Mr Farage’s accounts sparked outrage amongst senior Tory MPs, who had piled strain on Coutts and its proprietor NatWest.
Prime Minister Rishi Sunak had made plain his view that “no-one should be barred from using basic services for their political views”.