British bank, NatWest, has seen a significant hit to their shares today after a report found “serious failings” in how it had “debanked” former Brexit party leader Nigel Farage. Shares dropped 18% in early trading, though they later recovered.
The Financial Conduct Authority said it was looking at “potential regulatory breaches” by the NatWest group and its subsidiary, Coutts, which shut down Mr Farage’s bank accounts in July of this year, with staff claiming the campaigner’s values were not aligned with that of the bank.
The review conducted by law firm Travers Smith found “serious failings” in the bank’s treatment of Mr Farage, but it also said the banking group had acted lawfully and that the decision was “predominantly” a commercial one – but that “other factors” had also played a role, such as the Brexit campaigner’s political views.
The report added, however, that: “in describing it as such, it is important to recognise that there is no universally agreed definition of the term ‘commercial’, just as there is no universally agreed definition of, for example, the term ‘political’.”
Mr Farage described the report’s approach as mealy-mouthed, saying: “The law firm argues that my political views ‘not aligning with those of the bank’ was not in itself a political decision. This is laughable.”
“Worse still, Travers Smith did not find ‘any evidence’ that my pro-Brexit stance was a factor in the exit decision. The word Brexit appeared no less than 86 times in [their response to] my Subject Access Request. What planet are they living on?”
The controversy around the bank’s decision last July promoted a response from British Prime Minister Rishi Sunak who said that it wasn’t right for people to be deprived of basic services like banking because of their views.
“This isn’t about any one individual, it’s about values – do you believe in free speech and not to be discriminated against because of your legally held views?” he said.
The prime minister added: “Do you believe in privacy, particularly on matters as sensitive as your financial information? Those are the values and questions at stake here and that’s why I said what I did.”
NatWest CEO Alison Rose stepped down from her role after she admitted to a “serious error of judgment” in discussing Mr Farage’s relationship with the bank with a BBC journalist.
In July, The Telegraph reported that, NatWest staff “gloated” about the closure of Mr Farage’s bank accounts.
Workers reacted to news that the former Ukip leader had been debanked by NatWest subsidiary Coutts by saying: “Hope that knocked him down a peg or 2.”
Staff also referred to him as a “crackpot” and an “awful human being”, while one said: “The money I’d have paid to have been the agent ringing him to tell him [that he had been debanked].”
The internal documents revealed by the Telegraph showed that staff ay Coutts “had prepared a dossier on Mr Farage’s various statements on everything from Brexit to immigration and claimed these did not “align” with the bank’s own values”.
NatWest chairman, Sir Howard Davies said today: “We apologise once again to Mr Farage for how he has been treated. His experience fell short of the standards that any customer should expect.”
The Financial Conduct Authority said that it would interview “relevant bank staff” at NatWest.
“In recent weeks, we have confirmed to both firms [NatWest and Coutts] that we are now reviewing how the firms’ governance, systems and controls are working to identify and address any significant shortcomings,” the authority said.
“This supervisory work will include use of our statutory information gathering powers, interviews with relevant bank staff and reviews of appropriate policies or procedures.
“This will also include how these issues may impact on the wider fair treatment of customers.”