Treasury to summon bank chiefs to address ‘de-banking’ after Farage furore
The Treasury will this week summon the heads of Britain’s biggest banks to explain how they intend to ensure that customers are not “de-banked” for their political views after Coutts closed the account of former UK Independence Party leader Nigel Farage.
NatWest, Lloyds, HSBC and Barclays are among 19 banks and fintechs that will be called to a meeting after the treatment of Farage unleashed a political backlash and prompted the government to accelerate plans to crack down on the unfair closure of accounts.
Andrew Griffith, economic secretary to the Treasury, will write to the banks on Monday.
They will be asked to show how they will make sure “that customers can access payment accounts without fear of being de-banked for their lawful expression”, according to a draft of the letter seen by the Financial Times.
Coutts and its owner, NatWest, have been under fire since Farage last week released a 40-page dossier from Coutts showing that his account had been closed partly because his views were at “odds with our position as an inclusive organisation”.
NatWest chief executive Dame Alison Rose has apologised to Farage for the decision and pledged to oversee a review of the processes at Coutts, a high-end private bank whose clients include King Charles.
According to the draft of the Treasury letter, senior representatives from the banks will also be pressed on how they intend to implement rules rushed out last week that the government says are designed to protect customers’ right to free speech.
The measures include extending the notice period for customers being dropped from 30 days to 90 days, and giving clients a fuller explanation of a decision to ditch them.
“In line with the strength of feeling expressed from across parliament, firms should seek to take action on this policy as soon as possible and make best endeavours to implement,” according to the draft letter.
NatWest, whose biggest shareholder is the UK government following its bailout during the 2008 financial crisis, has not clarified whether Rose was personally involved in the closing of Farage’s account.
The leading Brexiter and television presenter said he had submitted a so-called special access request in a bid to discover whether Rose was involved.
NatWest, Lloyds, HSBC and Barclays declined to comment. The Treasury did not immediately respond to a request for comment.
Source: Financial Times
