Coutts CEO, Peter Flavel Resigns Over Farage De-banking Scandal

The CEO of the prestigious private bank for the wealthy, Peter Flavel has stepped down over the Farage debanking scandal row.

The departure comes after Dame Alison Rose, the CEO of the Nat West group apologised to Nigel Farage and resigned for breaking client confidentiality rules, exposing his financial details to a BBC journalist.

NatWest – which owns Coutts – said Peter Flavel’s resignation had been mutually agreed and would be immediate. Mr Flavel said how the bank handled Mr Farage’s account had “fallen below” its “high standards of personal service”.

Mr Farage said “ultimate responsibility for the dossier de-banking me for my political views” lay with Mr Flavel.

NatWest, which is 39% owned by the taxpayer, has been under fire after Dame Alison admitted she had made a mistake in speaking about Mr Farage’s relationship with Coutts. On Thursday, Mr Flavel said it was “right that I bear ultimate responsibility for this, which is why I am stepping down”.

This debacle began in July when Mr Farage, a prominent Brexiteer, said that his account at private bank Coutts had been closed and that he had not been given a reason. The BBC then reported that it was closed because he no longer met the wealth threshold for Coutts, citing a source familiar with the matter.

However, Mr Farage later obtained a report from the Bank which indicated his political views were also considered. The 40-page document flagged concerns that he was “xenophobic and racist”, and also questioned the reputational risk of having Mr Farage as a client. It said that to have Mr Farage as a customer was not consistent with Coutts’ “position as an inclusive organisation” given his “publicly stated views”.

The fallout from Mr Farage having his bank account closed has raised questions over whether banks can terminate accounts due to a person’s political views. The law states that every person in the UK has a legal right to hold a basic bank account, and that banks “must not discriminate against consumers” for a list of reasons such as sex, race, religion and also political beliefs.

The government met bank bosses on Wednesday who agreed to reforms on the closure of customer accounts.

Paul Thwaite, Dame Alison’s interim replacement at the top of NatWest, said Mr Flavel’s departure was “the right decision for Coutts and the wider group”. Mohammad Kamal Syed is set to take over as the boss of Coutts on an interim basis.