Pramod Thomas is a senior correspondent with Asian Media Group since 2020, bringing 19 years of journalism experience across business, politics, sports, communities, and international relations. His career spans both traditional and digital media platforms, with eight years specifically focused on digital journalism. This blend of experience positions him well to navigate the evolving media landscape and deliver content across various formats. He has worked with national and international media organisations, giving him a broad perspective on global news trends and reporting standards.
THE Financial Conduct Authority (FCA) is under fire from MPs who have raised 'serious questions' about its recent review of the debanking scandal, calling it a 'whitewash', reported the Telegraph.
The FCA on Tuesday (19) said that there is no evidence so far that Britain's banks have been closing accounts because of people's political views, though more detailed scrutiny is needed.
British finance minister Jeremy Hunt last month asked the FCA to urgently investigate terminations of bank accounts and suggested that lenders who have broken the law should be fined.
The practice, known as 'debanking' became a political issue after former Brexit Party leader Nigel Farage said his account at private bank Coutts, part of NatWest, had been closed due to his political views.
The FCA said that it looked at data from 34 banks and building societies, focusing on July 2022 to June 2023, but the speed of its inquiries meant there were some gaps, limitations and inconsistencies to information provided.
The watchdog's failure to include Nigel Farage's case at Coutts, where his account was threatened with closure due to his beliefs, has triggered controversy.
FCA officials defended their decision not to investigate Farage's case, stating that it was a 'high-profile example' being handled separately by the bank involved and that it fell outside the reporting period.
This explanation did not appease critics, who accused the FCA of conducting a superficial review.
Farage himself denounced the review as 'a whitewash and an absolute farce' and called for a complete overhaul of the FCA's leadership.
Tory MP Danny Kruger echoed these sentiments, asserting that the FCA had merely asked banks if they were guilty without actively seeking input from potential victims. He also called for a closer examination of the FCA itself.
The FCA's review did identify eight cases where the 'expression of political or any other opinions' was suspected as a reason for account closures. However, the watchdog concluded that this was not the primary reason in any of these cases. Instead, customer behaviour, including the use of racist language against staff, was the predominant factor leading to debanking.
Criticism also stemmed from the quality of the data collected during the review. The FCA admitted that some of the data supplied by institutions was unverified, and it acknowledged that as many as 20 per cent of account suspensions and closures were attributed to "Other," leaving the watchdog uncertain about the reasons behind these actions.
Nikhil Rathi, chief executive of the FCA, told the Telegraph that while no financial institution reported closing accounts primarily due to political views, further verification of bank-submitted data was necessary.
City minister Andrew Griffith acknowledged the FCA's report and emphasised the need for more robust validation of banks' submissions and a thorough follow-up on debanked customer perspectives.
While the FCA review found no evidence of political debanking, it did find that UK expats were facing the most at risk of having their accounts shut or suspended.
Separately, the FCA is reviewing how banks conduct mandatory extra checks on 'politically exposed' customers and their families for money laundering risks, with a report due by the end of June 2024.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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