The government has announced that banks will be required to provide an explanation and delay any decision to close an account under freedom of expression protection rules. The Treasury has taken action to address concerns that banks are terminating accounts due to disagreements with individuals’ political beliefs. This move comes after Natwest’s chief executive apologized to Nigel Farage and committed to a full review of the bank’s processes following allegations that his views were inconsistent with the bank’s inclusivity. Farage had claimed that his account was closed without explanation by the bank he had been with for over four decades.
Documents published in the Daily Mail included a 40-page memo by Coutts’ Wealth Reputational Risk Committee. The memo cited Farage’s resharing of a tweet mocking transgenderism and his association with tennis player Novak Djokovic, who opposes COVID-19 vaccinations. It also labeled Farage as xenophobic and racist.
The new rules will extend the notice period to 90 days, allowing customers more time to challenge a decision through the Financial Ombudsman Service or find a new bank. Banks will also be obliged to provide a clear explanation for terminating an account. The Treasury stated that these changes are possible due to new powers in the Financial Services and Markets Act 2023, which enable the UK to have control of its financial rulebook after Brexit.
Andrew Griffith, the economic secretary to the Treasury, emphasized the importance of respecting freedom of speech and balancing the rights of banks to act in their commercial interest with everyone’s right to express themselves freely. He believes that the changes will enhance customer rights, offering transparency, time to appeal, and a fairer playing field.
There have been instances where individuals claim that their bank accounts were closed due to ideological reasons. For example, Keith Jordan, the founder of Our Duty, said that Metro Bank refused to open a business account for his group due to a perceived conflict with the bank’s culture. The Yorkshire Building Society allegedly closed the account of the Reverend Richard Fothergill after he expressed his disagreement with the society’s public messaging during Pride month. Fothergill has requested the account to be reopened and an apology from the bank.
Toby Young from the Free Speech Union praised the government for taking action to address this form of cancel culture. Last year, his organization was de-banked by PayPal, leading them to engage with City and Treasury Minister Andrew Griffith to prevent similar incidents. Young commended the government for promptly responding to their concerns and tightening the Payment Services Regulations to prevent banks and payment processors from closing accounts based on individuals’ lawful free speech.
The Yorkshire Building Society was contacted for comment, but no response has been received.