NatWest Bank said there were “serious failings” in the way its subsidiary Coutts treated Nigel Farage when it closed his account – with an independent report ruling the decision itself was lawful.
The dispute led to the resignation of NatWest Group chief executive Dame Alison Rose and sparked a political backlash as ministers publicly criticized the bank.
The report, commissioned by NatWest, found the bank failed to properly handle sensitive information and mishandled Farage’s complaint. However, the decision to close the politician’s bank account was legal, the report said.
Mr Farage, the former leader of the Brexit Party, said his account was closed because his pro-Brexit political views did not please Coutts.
“However, Coutts considered the relationship with Mr Farage to be commercially unviable as it entailed significant losses,” the report from law firm Travers Smith said.
NatWest chairman Sir Howard Davis apologized to Farage and said the report highlighted “a number of serious shortcomings” in the bank’s relationship with the politician: “While Travers Smith confirms the legal basis for the decision to leave, the findings show clear shortcomings in how it was achieved, as well as errors in how we communicated with him, and regarding client confidentiality.
“We apologize again to Mr Farage for the way he was treated. His experience did not meet the client’s expectations.”
Sir Howard promised “significant changes” to NatWest and Coutt procedures. NatWest said directors are reviewing the findings of the initial review and will decide on appropriate action.
Dame Alison was forced to resign in July after admitting she had made a “serious mistake” after speaking to a journalist about Farage’s banking dealings at Coutts. The report said the director made an “honest mistake.”
She said the independent review “confirms that everything I told the board in July was accurate” and clarified that “no specific detailed financial information was leaked.”
Mr Farage called the report a “cover-up”. He said NatWest had not told the whole truth about the circumstances surrounding the closure and described the bank as a “heap of rubble”. He questioned the independence of the law firm that conducted the investigation and said one of its executives was at its mercy.
Mr Farage called the results “shoddy” and “ridiculous”, adding: “What they are saying is that my political views disagreeing with the bank’s are not in themselves a political decision.” Views on Brexit played a decisive role.” He said bank documents disclosed to him about the closure of his accounts contained the word “Brexit” 86 times, adding: “What planet are they living on?”
The Financial Conduct Authority said the report highlighted “potential breaches of regulations and a number of areas for improvement”. This includes how to close accounts and handle customer complaints. The FCA added that it is also reviewing the effectiveness of management at NatWest and Coutts.
Dame Alison said: “Both Travers Smith and the Information Commissioner’s Office (ICO) concluded that I had inadvertently confirmed what had already been widely reported, namely that Mr Farage had an account with Coutts.
“The ICO also concluded that “the impact of this particular disclosure was minimal.” Travers Smith clarifies that “no specific detailed financial information was available.”
“Travers Smith also confirmed that I was not aware of comments made by Coutts staff about Mr Farage, which were extremely distasteful and unfair.”
NatWest is under pressure to hold onto millions of pounds worth of unrealized shares that Dame Alison was due to receive. The statement said a decision on salary distribution would be announced “as soon as possible.”
The banks said pre-tax profits fell to £1.3 billion in the three months to the end of September, while revenue rose to £3.5 billion.
He warned that the benefits of higher interest rates are fading and beginning to decline. It said net interest margins, a key measure of lending profitability, fell 0.19 percentage points to 2.94 percent as customers switched their savings accounts from interest-free savings accounts to higher-paying savings accounts.
Source: I News
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