Regulator ‘will act’ if politicians are wrongly ‘de-banked’ after Farage row

The Financial Conduct Authority has warned banks it “will act” ought to politicians be wrongly “de-banked” due to their views.

It comes after former UKIP chief and ardent Brexiteer Nigel Farage had his account closed at unique financial institution Coutts in late June. He stated he was then refused accounts with different banks due to his political opinions.

FCA government director Sarah Pritchard, writing in The Telegraph, stated the regulator is now reviewing whether or not monetary establishments are being “proportionate” of their threat assesment of “politically exposed persons” (PEPs). She says whereas it’s mandatory for these in energy to be requested for extra data than different sources of wealth, this must be an “appropriate level of inquiry”.

She stated: “(It) should not feel like the financial equivalent of someone rifling through your bin.

“We have heard that often it has, particularly for the families of political figures.

“If we find that banks and others are more tick-box than risk-based, we will act. Because proportionate additional financial scrutiny should not make it harder than it needs to be to take part in public life.”

In the wake of the Farage row, Dame Alison Rose, the CEO of NatWest, the corporate that owns Coutts, stepped down from her position. The scandal introduced on calls from the Treasury and ministers for the FCA to conduct a evaluation into whether or not monetary establishments are assembly their steerage over the therapy of PEPs and whether or not that steerage must be up to date.

Pritchard stated the FCA are conducting a evaluation specializing in how “firms are applying the definition of PEPs to individuals” and “checking that firms are being proportionate in their risk assessments of UK PEPs”.

“This sets out that banks and others must be proportionate – with greater scrutiny on those who pose the greatest threat. And we have been clear that UK public figures should generally be considered low risk,” Pritchard stated.

Ms Pritchard added that the goals of the evaluation are to maintain the “system clean” however not deny PEPs the entry to monetary merchandise and “services necessary for everyday life”.