'Political discrimination': Senior Tories round on Coutts over Nigel Farage bank account closure

Coutts is facing growing criticism over its decision to close Nigel Farage's bank account after senior Conservative MPs questioned its motivations in the House of Commons.

Former cabinet ministers David Davis and Sir Jacob Rees-Mogg both raised the issue at Prime Minister's Questions on Wednesday afternoon.

Sir Jacob called for an inquiry and asked Rishi Sunak if he shared his "unease" that the bank "should close the account of a senior opposition politician".

Mr Davis claimed Coutts' actions amounted to "political discrimination", and asked: "Can he require every bank with a British banking licence to inform the Treasury of all the accounts shut down for non-commercial reasons?"

In response, the prime minister said it "wouldn't be right if financial services were being denied to anyone exercising their right to lawful free speech" and that the government intended to "crack down on this practice".

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It comes as Coutts finds itself at the centre of a political controversy after Mr Farage claimed his bank account was closed down after Coutts decided his views "do not align with our values".

The former UKIP and Brexit Party leader said last month that the exclusive bank - used by the Royal Family - had written to him to tell him both his personal and business accounts were being closed, without providing an explanation.

A Coutts spokesperson said decisions to close accounts "are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements".

As an outcry around the issue grows, Sky News has learnt that banks will be forced to give customers three months' notice of account closures - and to provide a full explanation of the reasons - under reforms that could be unveiled in the coming days.

There will also be a private notice question on the row in the House of Lords this afternoon, secured by former chancellor Norman Lamont.

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Mr Farage claimed in a video on Twitter last week that his account was closed because he was a "politically exposed person", or PEP, and that closing his bank accounts was part of a plan to force him out of the UK.

But both the BBC and Financial Times reported that the bank did not want his custom as he did not have enough money in his accounts.

Read more: What are PEPs and are banks allowed to close their accounts?

In an update on Tuesday evening, Mr Farage claimed he had seen a 40-page document showing that while he met the "criteria for commercial retention", his views - ranging from his position on LGBT+ rights and his friendship with former US president Donald Trump - meant the bank wanted him to leave.

A Coutts spokesperson said decisions to close accounts "are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements".

In an article in The Daily Telegraph, Mr Farage claimed he had never experienced "problems" with Coutts until "Brexit became a reality" and "everything changed".

He said the report claimed he was seen as "xenophobic and racist", repeated claims he was a fascist in his schooldays, and said his previous remarks were "distasteful and appear increasingly out of touch with wider society".

Sky News has not seen the document.

A Coutts spokesperson said: "Our ability to respond is restricted by our obligations of client confidentiality. Decisions to close accounts are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.

"As the client has previously confirmed, alternative banking arrangements have been offered within the wider group."

Appearing in front of the Treasury Select Committee on Wednesday afternoon, FCA chair Ashley Alder said he was not "aware" of any regulatory rules that could have led to Mr Farage having his bank account terminated.

He said that while it was "fundamentally up to them [banks] who they do business with", FCA-regulated firms "must treat people fairly".

"Reputational considerations about who you take on as a customer are frequently cited in financial services industry, across investment banks right through to retail," he added.

Nikhil Rathi, the FCA chief executive, also confirmed the regulator would be carrying out a review into PEP "to make sure those rules are being applied proportionally by banks".

With regards to freedom of speech, Mr Rathi said anyone who felt they were not being treated fairly could complain to the financial ombudsman service.

-sky news