Former Housing Minister Brandon Lewis has claimed that Tory activists who have volunteered for him in the past have struggled to get mortgages due to being considered as politically exposed persons (PEPs).
Taking on social media in his ‘In the Garden with Brandon’ series Lewis said: “People who have been active volunteers for me in the past, now suddenly, in the last couple of years, find they don’t not get a mortgage or insurance, but it’s just a lot harder.
“They have to go through far more questions and issues and I don’t think it was intended for that.”
Lewis did not elaborate on the names of any lenders who were involved in the matter.
Over the summer, the subject of PEPs has been making national headlines following former UKIP leader Nigel Farage’s debanking by Coutts.
Back in July NatWest chief executive Alison Rose stepped down following the saga. Coutts chief executive Peter Flavel also resigned from the Natwest-owned bank over his handling of the affair.
Lewis made his claim around PEPs when answering what his number-one priority would be if he could pass any law through parliament.
Earlier this month the Financial Conduct Authority (FCA) launched a review of the treatment of PEPs.
Sarah Pritchard, executive director of markets at the FCA, said: “These rules follow international standards and are designed to keep the financial system clean, free from corruption and guard against financial crime.
“It’s important that they are implemented proportionately and don’t create unnecessary barriers for public servants and their families. We have already persuaded some firms to improve their approach and we will use this review to identify if we need to provide further guidance to firms.”
“Under legislation adopted by Parliament, financial firms are required to do extra checks on political figures, their families and close associates. More than 200 countries and jurisdictions have signed up to the standards set by the Financial Action Task Force.
“However, if rules are applied inappropriately by firms, then individuals may find themselves excluded from products or services through no fault of their own.
“The FCA has already taken a number of steps to remind the industry and specific firms that they should follow its guidance on implementing current rules, and some firms have already changed their approach as a result.
“Individuals can also raise concerns with their financial institution or the Financial Ombudsman Service.”
