Strictly its not state since the FCA operates separately from the UK government, but they do have quite some authority in regulating financial markets. So a bod

Strictly its not state since the FCA operates separately from the UK government, but they do have quite some authority in regulating financial markets. So a body regulating the market on behalf of the state is doing the prohibiting. I don't know about the legalities, but it may well be that banks have little choice but to comply versus going against the regulator. Though Barclays' line about "we want to protect your money" is a bit much.