Receive free UK monetary regulation updates
We’ll ship you a myFT Daily Digest electronic mail rounding up the newest UK monetary regulation information each morning.
A evaluate by the chief UK monetary regulator has uncovered no evidence that politicians are being denied financial institution accounts as a result of of their views, in keeping with folks briefed on the findings.
The Financial Conduct Authority launched a probe in August, weeks after former UK Independence social gathering chief Nigel Farage unleashed a debate on free speech by claiming his accounts with non-public financial institution Coutts have been about to be closed as a result of his views “did not align” with the lender.
The row over the “debanking” of Farage sparked complaints from different politicians about their remedy by lenders, prompting the federal government to order a evaluate by the FCA.
People conversant in the state of affairs mentioned the FCA would publish findings within the coming days displaying there have been no instances of political views being the “primary” cause for private account closures throughout the 34 banks and fee firms that have been requested to submit knowledge to the regulator. The FCA declined to remark.
The knowledge examined by the FCA covers the interval from June 2022 to June 2023.
Farage went public about how his financial institution accounts have been about to be closed by an unnamed “prestigious” monetary establishment in late June, and later confirmed it was Coutts.
But his accounts with Coutts have been nonetheless energetic on the finish of July, when he mentioned the financial institution had provided to let him keep.
The FCA is conscious the info utilized in its evaluate was compiled shortly and that not all banks have good methods for monitoring and recording why accounts are closed or refused, mentioned two folks briefed on its work.
They added that the regulator would perform additional work to make sure that banks and fee firms aren’t unfairly denying entry to providers.
There was some unease in Whitehall that the FCA had failed to search out knowledge to indicate that “debanking” of folks for his or her political views was widespread.
One authorities insider mentioned “regulators have been quite slow off the line on this issue”, including that the info assembled by the FCA “might lack granularity”.
Farage in July revealed extracts from a file compiled by Coutts about him, because it deliberated about closing his accounts, wherein the financial institution mentioned persevering with to serve him wouldn’t be “compatible with Coutts” since his views have been “at odds with our position as an inclusive organisation”.
The row led to the departure of Alison Rose, chief government of NatWest, Coutts’ mum or dad firm, after she admitted sharing confidential details about his accounts with a journalist.
Politicians from throughout social gathering traces, led by prime minister Rishi Sunak, have condemned the obvious apply of banks closing down accounts of folks as a result of of their political views.
“People need to be able to have lawfully held views that we might not agree with, but they shouldn’t be denied financial services because of them,” mentioned Sunak final month.
The FCA is individually reviewing the remedy by monetary providers firms of so-called politically uncovered individuals, a bunch that features politicians and civil servants. The work is because of be accomplished subsequent 12 months.