Banks that unfairly refuse bank accounts to politicians face fines or other action, a senior manager of the UK’s financial regulator warned today.
Sarah Pritchard, executive director at the FCA, said it will act if politicians are unfairly penalised.
Pritchard, who was writing in the Telegraph following the row surrounding Natwest subsidiary Coutts's cancellation of former UKIP leader Nigel Farage’s accounts, said action includes the possibility of fines.
After government pressure, the FCA demanded that banks provide details of all accounts cancelled and the reasons for them.
Pritchard wrote while it is acceptable to check on “Politically Exposed Persons”, or PEPs, it shouldn’t feel like someone is “rifling through your bin”.
“If we find that banks and others are more tick-box than risk-based, we will act.
“Because proportionate additional financial scrutiny should not make it harder than it needs to be to take part in public life.”
As well as fines, the FCA can insist on policy changes by banks if they are found to have acted improperly.
The Farage row led to the resignations of Alison Rose as chief executive of NatWest and Peter Flavel, Coutts’ CEO.
Pritchard, who is scheduled to make a speech on the FCA’s activity tomorrow, said two reviews are underway currently into “de-banking” – one is focused on PEPs and the other on general de-banking.