Banks have been told by the UK regulator to take more care handling high-profile politicians after NatWest Group PLC (LSE:NWG)’s dealings with Reform MP Nigel Farage.
"Public service naturally comes with greater scrutiny. But it must be proportionate and shouldn't disadvantage people running for office or taking senior public roles, or their families," the FCA's executive director of markets and international, Sarah Pritchard, said in the statement.
"That requires a balancing act. Most firms try to get it right but there is more they can do. We're following up with those firms that were getting the balance wrong to ensure they make changes."
NatWest Group PLC (LSE:NWG) chief executive Alison Rose stood down after admitting discussing Farage’s banking details with a BBC journalist.
After that, the FCA began a review of how politically exposed persons (or PEPs) are treated and if they were being denied banking facilities due to their political views.
Initial findings suggested that prominent customers did not face excessive or disproportionate checks but nonetheless would amend its guidance for how PEPs are treated in future.
Possible changes include a lower risk status for PEPs and special protections for non-executive members of the civil service.
A consultation period will run to 18 October but action should be taken ahead of that, said the regulator.