British banks could lose their license if they discriminate against customers on the basis of political views, a plan is being developed by the UK government, The Telegraph reports July 19.
The ministers have ordered officials to begin drafting legislation imposing new responsibilities on banks with regard to freedom of expression. The reason for the order was the scandal with the closure of the account of the former leader of the independence party Nigel Farage by Coutts, who considered that Farage’s views were not “consistent” with his “values”.
According to Whitehall sources, the government is considering adding another free speech requirement to banking licences.
The move would mean that any bank that discriminates against a customer because of their political views could have their banking license revoked.
Treasury is preparing to enforce it by strengthening the Financial Conduct Authority’s Principles of Business Conduct. The sixth principle of leadership states that “the firm must pay due attention to the interests of its clients and treat them fairly”. This paragraph will be expanded to include the criterion of political opinion.
The changes are expected to be announced on Thursday, July 20, as part of the Treasury’s response to the revised payment services rules.
Prime Minister Rishi Sunak has vowed to “crack down” on banks that close customer accounts for nonprofit reasons amid growing backlash against Coutts and his parent company NatWest.
“In the short term, after having consulted on the rules of payment services, we intend to combat this practice by tightening the rules for closing accounts.”he said, speaking in parliament.
Source: Rossa Primavera
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