A recent debanking review has suggested that NatWest may have breached regulations set by the Financial Conduct Authority (FCA). This follows scrutiny and criticism over the closure of Nigel Farage’s Coutts bank account, which resulted in the departure of CEO Alison Rose and Coutts executive Peter Flavel. In light of the scandal, Rose’s £7.5 million payout was also rescinded in November.
The FCA’s initial findings did not indicate any proof of misconduct, but a subsequent analysis by law firm Travers Smith examined the closure of 84 Coutts accounts, which represented 10% of accounts over a two-year span ending in July 2023. The report concluded that there were “serious failings” in how Farage was treated.
The findings suggest that NatWest and Coutts may have violated FCA rules regarding customer treatment and the reasons for account terminations.
Mohammad Syed, CEO at Coutts, noted, “This report reaffirms that there were a number of shortcomings in our approach to account closures at Coutts and, in particular, in the quality and consistency of our communications. The experience of some of our customers fell short of what they should expect, and we apologise to them. We are committed to implementing all of the recommendations made by Travers Smith, including a comprehensive review and update of our exit and communication processes, to ensure a better, more consistent experience for all our customers.”