The Financial Conduct Authority (FCA) is launching an inquiry
The Financial Conduct Authority (FCA) has announced that it will be conducting an inquiry to investigate the impact of ‘debanking’ on MPs and other ‘politically exposed persons’ (PEPs). This comes in the wake of the recent scandal surrounding the closure of Nigel Farage’s bank accounts, which resulted in the resignation of Nat West’s CEO, Alison Rose, and Coutts’ CEO, Peter Flavel.
The FCA’s inquiry was prompted by the closure of Farage’s private bank account with Coutts, which caused widespread criticism of the banks involved. The regulatory body plans to send letters to PEPs to determine the scope of the issue and whether it affects other politicians as well.
FCA to review politically focused ‘debanking’
The FCA’s primary focus will be to review the extent to which politically focused debanking causes difficulties for individuals seeking to open bank accounts. Chancellor Exchequer Jeremy Hunt, who recently revealed that he was refused a Monzo bank account, has called on the FCA to urgently investigate this practice. Hunt emphasized that banks could face significant fines if they are found to be engaging in widespread debanking.
Findings and Outcome
The FCA has disclosed that the full terms of reference for the inquiry will be published in September, and the findings are expected to be released by June of next year. The regulatory body is eager to gather the experiences of UK PEPs and hear any problems they have encountered to better understand the situation and potentially make necessary changes to the regulations surrounding politically exposed persons. This inquiry aims to shed light on the issue and ensure fair access to banking services for politicians and other individuals involved in politics.