FCA spends more than £250,000 on ‘debanking’ inquiry amid Natwest scandal
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The UK’s financial regulator has spent more than a quarter of a million pounds on its “debanking” inquiry, according to Financial News, as Natwest faces criticism over the closure of Nigel Farage’s account.
The Financial Conduct Authority (FCA) launched a probe into whether the sector was unfairly closing customers’ bank accounts over their political views after the Brexiteer and former UKIP leader claimed he was “debanked” by Natwest-owned Coutts.
Financial News found through freedom of information laws that the regulator had already spent an estimated £276,000 on its probe.
“Had the FCA done its job in the first place, rather than focusing on woke causes, they would not have needed to spend all of this money,” Farage told Financial News.
The FCA said the cost was largely incurred by staff time and includes work on both its report into the subject and follow-up questions for banks.
Its preliminary review found last month that there were no signs of systemic “debanking” of customers for their political views.
“Protecting consumers from harm is a central part of what we do every day and when concerns are raised about issues affecting significant numbers of people, whether that be debanking or low saving rates, we shift our resources to prioritise these,” an FCA spokesperson told City A.M
“Alongside this work, we have continued to focus on ensuring that consumers are protected throughout the cost of living challenges, including our work on mortgages, insurance and consumer credit.”
Natwest boss Dame Alison Rose resigned after she admitted to leaking confidential information about Farage’s finances to the BBC.
An internal review concluded last week the closure of Farage’s account was lawful and that Rose made an “honest mistake” but noted “serious failings” in Natwest’s handling of his information.