Coutts financial institution has mentioned it doesn't shut buyer accounts "solely on the basis of legally held political and personal views" because it got here underneath heavy criticism for terminating its relationship with Nigel Farage.

Quite a lot of Conservatives publicly criticised the financial institution after the previous Brexit Party chief claimed his account was closed down as a result of his views didn't align with the agency's "values".

In mild of the row, the Treasury is making ready to power banks to provide clients three months' discover of account closures and to supply a full clarification.

Banks additionally face dropping their licences in the event that they shut accounts as a result of they don't agree with a buyer's political opinions, amid considerations over free speech.

In a brand new assertion issued on Thursday, a Coutts spokesperson acknowledged the "substantial interest" within the Farage case however mentioned it couldn't remark intimately due to buyer confidentiality obligations.

However, they careworn "it is not Coutts' policy to close customer accounts solely on the basis of legally held political and personal views".

"Decisions to close an account are not taken lightly and involve a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements," they mentioned.

"We recognise the critical importance of access to banking. When it became clear that our client was unable to secure banking facilities elsewhere, and as he has confirmed publicly, he was offered alternative banking facilities with NatWest. That offer stands.

"We perceive the general public concern that the processes for ending a buyer relationship, and the way that's communicated, aren't sufficiently clear."

They added: "We welcome the anticipated HM Treasury recommendations in this area, alongside the ask to prioritise the review of the regulatory rules relating to politically exposed persons.

"We stay up for working with authorities, the regulator and the broader trade to make sure that common entry to banking is maintained."

On Wednesday, Mr Farage described a doc he claimed confirmed Coutts closed his checking account due to his political beliefs as "prejudiced and nasty".

The former Brexit Party chief claims he has a 40-page doc that proves Coutts "exited" him because he is regarded as "xenophobic and racist" and a former "fascist".

The former UKIP and Brexit Party chief mentioned he was shocked by the "vitriol" within the document as he called for a change in legislation to ensure the right of an individual to open a bank account.

He previously claimed that a subject access request he made to the bank, whose clients include members of the Royal Family, reveal it regards him as a PEP or "politically uncovered particular person" - someone who holds or has held public office and therefore may be more susceptible to bribery or corruption.

He told Sky News: "It's such a prejudiced, nasty doc. It's the metropolitan elite loathing the views of the numerous hundreds of thousands of us that reside exterior the M25.

Sky News has not seen the doc in query.

Mr Farage claimed 10 banks have refused to open an account in his identify, saying he might "effectively become a non-person" with out a methodology of banking.

His complaints have been raised by numerous Conservative MPs, together with former cupboard ministers Sir Jacob Rees-Mogg and David Davis.

Sir Jacob referred to as for an inquiry and requested Rishi Sunak throughout prime minster's questions if he shared his "unease" that the financial institution "should close the account of a senior opposition politician".

Mr Davis claimed Coutts' actions amounted to "political discrimination", and requested: "Can he require every bank with a British banking licence to inform the Treasury of all the accounts shut down for non-commercial reasons?"

In response, the prime minister mentioned it "wouldn't be right if financial services were being denied to anyone exercising their right to lawful free speech" and that the federal government supposed to "crack down on this practice".

The monetary regulator, the Financial Conduct Authority (FCA), has additionally confronted questions over the row.

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Appearing in entrance of the Treasury Select Committee on Wednesday afternoon, FCA chair Ashley Alder mentioned he was not "aware" of any regulatory guidelines that would have led to Mr Farage having his checking account terminated.

He mentioned that whereas it was "fundamentally up to them [banks] who they do business with", FCA-regulated companies "must treat people fairly".

"Reputational considerations about who you take on as a customer are frequently cited in financial services industry, across investment banks right through to retail," he added.

Nikhil Rathi, the FCA chief government, additionally confirmed the regulator can be finishing up a evaluation into PEP "to make sure those rules are being applied proportionally by banks".

With regards to freedom of speech, Mr Rathi mentioned anybody who felt they weren't being handled pretty might complain to the monetary ombudsman service.

Content Source: information.sky.com