THE chief executive of Coutts, the private bank embroiled in controversy over its role in the financial affairs of Nigel Farage, has quit.

NatWest Group, which owns the private bank, announced this afternoon that Peter Flavel had stepped down with immediate effect.

It comes a day after Dame Alison Rose left her position as chief executive of Natwest by mutual consent, after she was revealed as the source of a BBC story which highlighted Coutts’ decision to close the accounts of Mr Farage.

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Mr Flavel said Coutts had “fallen below the bank’s high standard of personal service” in its handling of the former UKIP leader’s financial affairs.

He said: "I am exceptionally proud of my seven years at Coutts and I want to thank the team that have built it into such a high performing business.

"In the handling of Mr Farage’s case we have fallen below the bank’s high standards of personal service. As CEO of Coutts it is right that I bear ultimate responsibility for this, which is why I am stepping down.”

NatWest interim chief executive Paul Thwaite said: “I have agreed with Peter Flavel that he will step down as Coutts CEO and CEO of our wealth businesses by mutual consent with immediate effect.

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"Whilst I will be personally sorry to lose Peter as a colleague, I believe this is the right decision for Coutts and the wider Ggoup.

“I have asked Mohammad Kamal Syed to step into the role of interim CEO of Coutts and our wealth businesses. Mo has extensive wealth management experience and is the ideal person to lead Coutts through this difficult time as we begin the search for Peter's replacement.”

NatWest chairman Sir Howard Davies said on Tuesday that Ms Rose had made a “regrettable error of judgment” in becoming the source of a story about Coutts closing Mr Farage's account for commercial reasons.

It was subsequently revealed, following a request by Mr Farage for a subject access review, that bankers at Coutts had expressed concerns over his political views. This has sparked widespread debate over whether an individual can be denied access to banking services on account of their opinions.

Ms Rose said she had made a “serious error of judgement in discussing Mr Farage’s relationship with the bank” with Simon Jack of the BBC, though she maintained that she did not disclose any personal financial information to the journalist.