Debanking debacle: RBS owner NatWest says no evidence of political discrimination

Coutts boss says there were a number of shortcomings in its approach to account closures.
NatWest Group has published the key findings and recommendations from the latest phase of the Travers Smith independent review.NatWest Group has published the key findings and recommendations from the latest phase of the Travers Smith independent review.
NatWest Group has published the key findings and recommendations from the latest phase of the Travers Smith independent review.

Royal Bank of Scotland parent NatWest Group has said there is no evidence of discrimination due to political views in Coutts’ decision to close customer accounts, an independent review of the bank found.

Coutts closed some 900 accounts over a two-year period, including those of politicians known as “politically exposed persons”, and not including inactive accounts or customers initiating the closure. NatWest, which owns Coutts, said lawyers at Travers Smith analysed 84 account closures in the two years to July 28, about a 10 per cent sample of all the relevant cases in that time.

Hide Ad
Hide Ad

The report found that decision-making was appropriate and consistent with industry standards, and that there was no evidence of discrimination due to political views or affiliations, or any other protected characteristic. However, Coutts said it recognises there are “lessons to be learned” from the way it communicates with customers.

The investigation was launched in July after former Ukip leader Nigel Farage said the high-net-worth bank unfairly closed his account because it did not agree with his political views. The first phase of the review found that the bank showed “serious failings” in its treatment of Farage, but that the decision to shut his account was lawful and predominantly commercial.

Former chief executive of the banking group, Dame Alison Rose, left the business in July after admitting to a “serious error of judgement” in discussing Farage’s Coutts account with a BBC journalist. Coutts chief executive Peter Flavel also stepped down following the debacle.

Mohammad Syed, new chief executive of Coutts, said: “Although Travers Smith confirms that, in general, decisions were appropriate and that there was no evidence of discrimination, it is clear there are lessons to be learned. 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 comprehensively reviewing and updating exit and communication processes, so that we deliver a better, more consistent experience for all our customers.”

Comments

 0 comments

Want to join the conversation? Please or to comment on this article.