The UK Government has announced its intention to make changes to the Threshold Conditions and “stamp out de-banking”.
The Chancellor and HM Treasury has announced that:
- The Conditions, which determine whether a bank can operate, will be amended as to ensure that banks are upholding their legal duties to protect freedom of speech;
- A public consultation will be launched to consider how these changes are best delivered, before the Government legislates next year, as part of the its aim to “put an end to de-banking for freedom of speech reasons”;
- The FCA has been requested to conduct a deep dive into de-banking;
- The notice period for payment service framework contract terminations will be increased from two months to 90 days, and banks will be required to give customers clear and tailored explanations for why they had closed an account – unless in limited cases such as where this would be unlawful.
Firms can review the Government’s announced intentions, and any implications that these may have on their policies and procedures.