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A review by the chief UK financial regulator has found no evidence of bank account denials based on political views, according to insiders.
The Financial Conduct Authority (FCA) began an investigation in August after Nigel Farage, former leader of the UK Independence Party, claimed his accounts with Coutts were going to be closed due to misaligning views.
This sparked complaints from other politicians regarding their treatment by banks and led to a government-ordered review by the FCA.
Insiders say that the upcoming findings, to be published soon by the FCA, will show that political views were not the primary reason for personal account closures among the 34 banks and payment companies surveyed. The FCA has declined to comment.
The data analyzed by the FCA covers the period from June 2022 to June 2023.
In late June, Farage revealed that his unnamed “prestigious” financial institution would be closing his accounts, later confirmed to be Coutts.
However, by the end of July, Farage’s accounts with Coutts were still active as the bank had offered to let him stay.
© Tolga Akmen/AFP/Getty Images
Insiders familiar with the FCA’s work have stated that the data used in the review was compiled quickly and that not all banks have adequate systems for monitoring and recording reasons for account closures or refusals.
They also mentioned that the FCA will conduct further investigations to ensure fair access to banking services by banks and payment companies.
Some individuals within the government expressed unease about the FCA’s inability to find widespread data indicating account closures based on political views.
A government insider stated that regulators have been slow in addressing this issue, and the data collected by the FCA may lack detail.
In July, Farage revealed extracts from a Coutts dossier that deliberated on closing his accounts, citing that his views were not “compatible with Coutts” and clashed with the bank’s stance as an inclusive organization.
This controversy resulted in the departure of Alison Rose, CEO of NatWest, Coutts’ parent company, after she admitted sharing confidential account information with a journalist.
Politicians across party lines, led by Prime Minister Rishi Sunak, criticized the practice of banks closing accounts due to political views.
Sunak stated last month, “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.”
The FCA is also conducting a separate review on the treatment of politically exposed persons, including politicians and civil servants, by financial services companies. The review is set to be completed next year.
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