NatWest chief executive Alison Rose apologised to Nigel Farage for dropping him as a client of its private bank Coutts, as the UK government accelerated plans to clamp down on banks unfairly closing accounts.
Rose, who earlier this week was named as one of Prime Minister Rishi Sunak’s 14-strong “Business Council”, wrote to Farage on Thursday to apologise for the decision that led to the account closure of the former leader of the UK Independence party and Brexit party. She also pledged to personally oversee a full review of processes at Coutts — once known as the Queen’s bank.
Her apology came minutes after the Treasury pushed out plans to force banks to “explain and delay” any decision to close a bank account, under new rules designed to protect freedom of expression. The episode has sparked a growing political furore over Farage’s treatment by NatWest, whose biggest shareholder has been the UK government since a taxpayer bailout at the height of the 2008 financial crisis.
“I am writing to apologise for the deeply inappropriate comments about yourself” made for the bank’s wealth committee, she said. “Your experience, highlighted in recent days, has shown we need to also put our own processes under scrutiny too.”
“I believe very strongly that freedom of expression and access to banking are fundamental to our society,” she added. “I fully understand yours and the public’s concern that the processes for bank account closure are not sufficiently transparent.”
Farage earlier this week released documents he received from Coutts that showed the elite private bank decided to close his account not only for commercial reasons, but also because his political views were “at odds with our position as an inclusive organisation”.
Rose has since come under intense pressure from MPs to explain why she allowed the move, as the growing scandal threatens to inundate the bank with complaints from others similarly cut off.
David Jones, a former cabinet minister, said earlier on Thursday that Rose “should also indicate if she will be resigning. That is expected of someone in her position when things go badly wrong.”
Philip Davies, a senior Tory MP, said the decision by Coutts to close Farage’s account was “unjustifiable” and suggested that Rose’s position could be “untenable”.
Criticism of Rose has not been limited to MPs. One NatWest investor said: “It calls into question the judgment of Alison Rose . . . I would’ve liked to think she would have thought, ‘This is outrageous, we can’t do this.’ If she went along with it, I find that worrying.”
The bank has not clarified whether Rose was personally involved in the decision. In a statement on Thursday it said: “It is not our policy to exit a customer 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.”
The scandal has attracted the scrutiny of the financial regulator, and has prompted the Treasury to push out new rules that it says will protect free speech. The measures published on Thursday will require banks to give a full explanation when they drop an existing customer. Also, the period of notice they will have to give customers before ending their contract is being increased to 90 days from 30 days.
A parallel review by the Financial Conduct Authority into rules around so-called politically exposed persons, such as MPs, has also been ordered.
Farage’s campaign could also lead to a deluge of requests from thousands of other customers that claim NatWest has unfairly closed their accounts without explanation. A Facebook group with 9,600 members has begun sharing information on how to submit a data subject access request (DSAR) to the bank to find out the circumstances and reasoning behind the closures.
Farage used the same tactic to obtain a 40-page dossier from Coutts, which made clear it had discussed ending his status as a client not just for commercial reasons, but also because of his political views.
Comment guidelines
It's a perfectly reasonable arrangement. They want high value customers, and I am not their target customer. And neither is Farage.
This is a bizarre nonstory. "Man with insufficient assets declined by luxury banker". He doesn't meet the T&C. And here we are discussing this weeks later.
Perhaps the dear boy is bereft that his "lowly" financial circumstances have been exposed. What on earth is wrong with Coutts saying, "you don't meet the financial bar for our customers, we cannot provide services to you". After all, if I can't do the downpayment and monthly on a Ferrari, I can't buy one. How is this different?