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FCA probes NatWest knowledge breaches after Farage row

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FCA probes NatWest knowledge breaches after Farage row

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The FCA is to probe potential regulatory breaches associated to NatWest’s unilateral closure of politician Nigel Farage’s Coutts checking account earlier this yr.

Dame Alison Rose, CEO of NatWest mother or father Coutts, resigned in July after allegedly sharing details about the account closure with a journalist.

In a press release right now, the FCA stated it had reviewed the findings of an preliminary unbiased report from a regulation agency, commissioned by NatWest, into selections on potential account closures and knowledge safety breaches.

It stated this report, and extra info, had highlighted “potential regulatory breaches” and areas for enchancment.

These embody: 

  • the corporations’ processes, techniques and controls round how NatWest / Coutts considers the potential closure of accounts and handles complaints from prospects
  • the allocation of duties and effectiveness of the corporations’ governance mechanisms

The watchdog stated that each corporations had been now reviewing how their governance, techniques and controls are working to determine and deal with any “important shortcomings.”

This supervisory work will embody use of the FCA’s statutory info gathering powers, interviews with related financial institution employees and evaluations of acceptable insurance policies or procedures, the FCA stated.    

The investigation may also have a look at how the problems raised could affect on the broader truthful therapy of shoppers. 

The FCA added, nonetheless, that any complaints about dealing with of particular person circumstances stay a matter for the Monetary Ombudsman Service though it will cooperate with the FOS.

Mr Farage, a former chief of the UKIP political get together and a distinguished Brexit campaigner, reported earlier this yr that his account with Coutts had been unexpectedly closed with out him being given a cause.

In July Dame Alison admitted to being the supply of an inaccurate BBC story which stated Mr Farage’s account had been closed as he not met the wealth threshold for Coutts.

Dame Alison apologised for the breach of knowledge. Initially the board backed her however she determined to resign.

Mr Farage has known as for your entire NatWest board to resign.

In the meantime, NatWest right now made a press release on the inquiry it commissioned from regulation agency Travers Smith into the Nigel Farage account closure.

NatWest Group chairman, Sir Howard Davies, stated: “This report units out numerous severe failings within the therapy of Mr Farage. Though Travers Smith verify the lawful foundation for the exit choice, the findings set out clear shortcomings in the way it was reached in addition to failures in how we communicated with him and in relation to consumer confidentiality. We apologise as soon as once more to Mr Farage for the way he has been handled. His expertise fell in need of the requirements that any buyer ought to anticipate.

“Our job now could be to guarantee that doesn’t occur once more. The financial institution is dedicated to implementing all of the suggestions made by Travers Smith and we’re making substantive modifications to our insurance policies and procedures, specifically to make sure that the lawfully protected beliefs or opinions of shoppers don’t play any position in our choice making.

“The board is contemplating the findings and deciding on the suitable outcomes on different issues. It’s important we have now regard to all needed processes and due consideration of points, together with the financial institution’s obligations round privateness and confidentiality.” 

NatWest additionally introduced Q3 outcomes right now with complete revenue up by 8% yr on yr to £3.5bn, lacking Metropolis expectations.




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