Banks will be forced to give three months' notice if they plan to close customers' accounts after a row involving the closure of Nigel Farage's bank account.
The Treasury plans to make banks provide a full explanation for terminating an account after Coutts Bank allegedly shut the former UKIP leader's account amid concerns he is seen as "xenophobic and pandering to racists" and a "disingenuous grifter".
City Minister Andrew Griffith is expected to announce the proposals in a written ministerial statement imminently. They will set out the need for British lenders to be clearer and more transparent about their decisions.
Customers would keep their right to appeal a bank's decision to close an account and it is hoped that a longer notice period and more transparency will increase the chances of an appeal going well. According to reports, there will be a small number of reasons a bank can still close account without a full explanation including suspicions of serious criminal activity or national security.
The Financial Conduct Authority (FCA) will need to change its rulebook to include the changes however this shouldn't take too long, sources told Sky News.
New Year resolutions you should make for 2023 based on your star sign
Nigel Farage released 40 pages of documents which he says back up his claim that he was booted out because of his political views (Adam Gerrard / OK! Magazine)It comes after Rishi Sunak said this afternoon the government was "in the process of cracking down on this practice" after Mr Farage released 40 pages of documents which he says back up his claim that he was booted out because of his political views.
The Prime Minister told the Commons that people shouldn't have financial services withdrawn because they exercise free speech - and appeared to suggest Mr Farage should complain to the Financial Ombudsman.
Sir Jacob Rees-Mogg called for an inquiry into claims that former Brexit Party leader Nigel Farage's account was closed by Coutts over his views. At PMQs, the Conservative former cabinet minister said: "Does (the Prime Minister) share my unease that a bank that has the Government as its largest shareholder should close the account of a senior opposition politician? Will he use the Government's shareholding to ensure that there is an inquiry into these circumstances?"
Mr Sunak responded: "It wouldn't be right if financial services were being denied to anyone exercising their right to lawful free speech. Our new Financial Services and Markets Act puts in place new measures to ensure that politically exposed persons are being treated in an appropriate and proportionate manner.
"Having consulted on the payment services regulations, we are in the process of cracking down on this practice by tightening the rules around account closures. But, in the meantime, any individual can complain to the Financial Ombudsman Service, which has the power to direct a bank to reopen their account."
Mr Farage told the PM news agency his experience has left him fearing the UK is moving towards a "Chinese-style social credit system" where only those with "acceptable views" can participate in society. According to notes shared by Mr Farage, bank officials said allowing him to have an account "was compatible" but to his "publicly-stated views that were at odds with our position as an inclusive organisation".
Keir Starmer's spokesman said not enough information was known to give a view on the matter. He told reporters: "I think it would be fair to say we just don't know enough information at this stage. Clearly, the position as had been initially reported is now contested and so therefore it wouldn't be appropriate to speculate on what has or hasn't happened."
Earlier Home Secretary Suella Braverman voiced her support for Mr Farage, an ex-politician and GB News presenter, describing it as a "scandal". She tweeted: "NatWest and other corporates who have naively adopted this politically biased dogma need a major rethink."
Energy Security Secretary Grant Shapps told Sky News: "I think it is absolutely disgraceful. I don't have to agree with everything Nigel Farage says to recognise that free speech is a very important part of our domestic life."
A Coutts spokesman told Sky News: "Our ability to respond is restricted by our obligations of client confidentiality. Decisions to close accounts are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements. As the client has previously confirmed, alternative banking arrangements have been offered within the wider group."
Covid virus can be cut to pieces by molecular 'scissors' in drugs to protect us
* Follow Mirror Politics on , , and .
Read more similar news:
Comments:
comments powered by Disqus
