Proactive Investors - Britain’s banks have been given a two-week deadline to explain how and why customers' accounts have been closed as the “debanking” probe by the UK financial regulator got underway.
NatWest Group PLC (LON:NWG) and the other major UK banks will have to detail the number of customers who have had accounts either closed, suspended or denied banking services and the reasons why.
The government recently changed rules regarding bank closures and ordered the FCA to carry out a review after former UKIP leader Nigel Farage had his account closed by NatWest subsidiary Coutts because of his political views.
Coutts chief executive Peter Flavel and NatWest boss Alison Rose both resigned over the way the bank handled the issue after Farage published minutes of meetings in which he was described as “xenophobic and racist” and posed a reputational risk.
City minister Andrew Griffith said in July: "There are wider issues here as well concerning banks potentially not providing banking services to people because of their lawful political views."
Chancellor Jeremy Hunt described political debanking as a threat to free speech.
The FCA review is expected to be made public in mid-September.
An independent review has been launched by NatWest into how Coutts handled the closure of Farage’s accounts.
Shares in NatWest edged up 0.5% to 238.3p.