Rishi Sunak said the government will crack down on banks that deny financial services to clients for expressing their opinions, as the closure of Nigel Farage’s bank account drew criticism from Conservative MPs.
(Bloomberg) — Rishi Sunak said the government will crack down on banks that deny financial services to clients for expressing their opinions, as the closure of Nigel Farage’s bank account drew criticism from Conservative MPs.
“It wouldn’t be right if financial services were being denied to anyone exercising their right to lawful free speech,” the prime minister told Parliament on Wednesday. “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.”
In the meantime, clients can complain to the Financial Services Ombudsman which can direct a bank to reopen an account, Sunak said. His comments followed questions from Brexit-backing lawmakers Jacob Rees-Mogg and David Davis.
https://t.co/1b6wlCT17t #PMQs pic.twitter.com/fjFeNEVvuY
— Bloomberg UK (@BloombergUK) July 19, 2023
Earlier, City Minister Andrew Griffith tweeted that it would “be of serious concern if financial services were being denied to anyone exercising their right to lawful free speech.” Suella Braverman said companies that have “adopted this politically biased dogma need a major rethink.”
Farage has said internal documents about him compiled by his longtime bank Coutts call for his account to be closed because he does not support the diversity, policies and purposes of the bank. The former leader of the pro-Brexit UK Independence Party wrote in a Telegraph column on Tuesday that the 40-page report he obtained from Coutts, a unit of NatWest Group Plc, shows the bank discriminated against him on personal and political grounds.
“Our ability to respond is restricted by our obligations of client confidentiality,” a spokesperson for Coutts said in an emailed statement. “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.”
Read More: Farage Rails Against Coutts as Lender Defends Review Process
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.