UK regulators will examine the governance of NatWest and its subsidiaries

MADRID, October 27 (EUROPA PRESS) –

British bank NatWest, the current name of the former Royal Bank of Scotland (RBS), has admitted that “serious failures” had occurred in the closure of accounts by Nigel Farage, the former leader of the UK Independence Party (UKIP), at private bank Coutts, a subsidiary corporate entity, although emphasizing that the decision is valid and taken in accordance with relevant banking policies and processes.

According to the conclusion of an independent investigation in this matter commissioned by the bank’s firm Travers Smith, regarding the closure of Farage’s accounts and possible breaches of confidentiality regarding his client information, the decision was “lawful and taken in accordance with relevant banking policies and processes”, although it also identified a number of shortcomings in the way it was implemented, the way the bank communicated with affected people, and the way the bank treated their confidential information.

“This report reveals a series of serious failures in the treatment given to Mr Farage,” said NatWest president Howard Davies, who although Travers Smith confirmed the legal basis for the decision, its conclusions showed “clear flaws.”

“Once again we apologize to Mr Farage for the treatment he received. His experience did not meet the standards any customer would expect,” he said.

In this way, the entity has committed to implementing all recommendations made by Travers Smith, making substantial changes to its policies and procedures, in particular to ensure that clients’ legally protected beliefs or opinions do not play any role in decision-making.

Controversy arising from the former UKIP leader’s closure of accounts held by Nigel Farage at Coutts, which led to the resignation of NatWest CEO Alison Rose in July, after the banker spoke out about the case with the BBC network.

In this case, Travers Smith’s independent investigation showed that the decision was made at a meeting of the Estate’s Reputation Risk Committee in November 2022, without Rose’s participation, stressing that “it was legal” and did not represent a direct or indirect violation. of applicable standards and taken “in accordance with relevant banking policies and processes.”

Ultimately, the exit decision was “largely a commercial decision,” the British entity said referring to Coutts’ contention that its relationship with Nigel Farage was “commercially unviable as it caused significant harm” without eligibility criteria.

Likewise, the report suggests that there were also other risks beyond commercial risks that were considered as part of the decision-making process, highlighting the risks Coutts considered to its reputation in the eyes of stakeholders, despite Mr Farage’s public statements on a range of issues, according to Travers Smith. “was not a determining factor,” but rather supported the decision.

“Coutts had the contractual right to close Mr Farage’s account and the decision was made in accordance with relevant banking policies and processes,” the investigation concluded.

On the other hand, regarding the treatment of confidential client information, it was acknowledged that this could be conveyed “expressly or implicitly” by Alison Rose to the BBC.

The report also notes that Coutts paid little attention to Nigel Farage’s interests and did not treat him fairly, which could also be a regulatory breach, although the report cautions that this is an issue for the relevant regulators to decide.

In this regard, the UK Financial Conduct Authority (FCA) has announced that it is examining the governance of both companies, as well as the entities’ systems and controls to identify and address significant deficiencies.

“This oversight work will include the use of our legal information collection powers, interviews with relevant banking personnel and review of appropriate policies or procedures,” the regulator explained.