Coutts hits back amid Nigel Farage bank account row

He previously claimed that a subject access request he made to the bank, whose clients include members of the Royal Family, reveal it regards him as a PEP or “politically exposed person” – someone who holds or has held public office and therefore may be more susceptible to bribery or corruption.

Mr Farage claimed 10 banks have refused to open an account in his name, saying he may “effectively become a non-person” without a method of banking.

His complaints have been raised by a number of Conservative MPs, including former cabinet ministers Sir Jacob Rees-Mogg and David Davis.

In response, the prime minister said it “wouldn’t be right if financial services were being denied to anyone exercising their right to lawful free speech” and that the government intended to “crack down on this practice”.

And asked about the row today, the prime minIster’s official spokesperson said the government believed the rules for banks needed to “toughened up” so people are not rejected because of their political views.

They said the government was reviewing evidence from a consultation on freedom of expression in the provision of payment services and that its findings will be published soon.

They added: “We’ve recently passed a law that requires the FCA to review how banks treat what are known as politically exposed persons so we can strike the balance between a customer’s right to free speech and the bank’s right to manage commercial risks.

“And we’ve also asked the FCA to review whether these institutions are meeting its guidance on politically exposed persons.

“So we do think there needs to be further work on this, but I won’t get ahead of the work.”

Mr Farage praised the government’s action, saying: “Well done, the government.

“I think this is one of the swiftest interventions I’ve seen by government for many, many years.”

The Financial Conduct Authority has also faced questions over the row.

Appearing in front of the Treasury Select Committee on Wednesday afternoon, FCA chair Ashley Alder said he was not “aware” of any regulatory rules that could have led to Mr Farage having his bank account terminated.

He said that while it was “fundamentally up to them [banks] who they do business with”, FCA-regulated firms “must treat people fairly”.

Nikhil Rathi, the FCA chief executive, also confirmed the regulator would be carrying out a review into PEP “to make sure those rules are being applied proportionally by banks”.

With regards to freedom of speech, Mr Rathi said anyone who felt they were not being treated fairly could complain to the Financial Ombudsman Service.