The Berne Financial Services Agreement (BFSA) will reduce regulatory barriers by enabling U.K. insurance companies to provide wholesale insurance services in Switzerland without needing Swiss authorization and by enabling Swiss firms to provide investment services to eligible clients in the U.K. without needing U.K. authorization, the FCA said in a Wednesday (July 23) press release.
In each case, companies will be able to follow their own country’s supervisory and regulatory rules, without having to navigate the other country’s rules, with which they may not be familiar, according to the FCA’s BFSA page.
The implementation timeline for the BFSA includes the signing of a supervisory cooperation memorandum of understanding in September, the publication of detailed operational guidance in November, and the launch of the BFSA after its ratification by the U.K. and Switzerland in early 2026, according to the BFSA page.
Firms that express their interest to the FCA will gain access to information about the BFSA’s eligibility requirements, guidance material, key updates and opportunities to attend engagement events, according to the expression of interest form.
The financial services trade between the U.K. and Switzerland amounted to about 5 billion pounds (about $6.8 billion) in 2024, per the press release.
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“This agreement will reduce barriers and ensure open access between the U.K. and Switzerland for decades to come,” Ruairi O’Connell, director of international at the FCA, said in the release. “It is part of our work to support growth by enabling investment, innovation, and ensuring the continued competitiveness of our world-leading financial services.”
The FCA said in November that it aims to support the competitiveness of the U.K.’s financial services sector. The regulator said it was looking at ways to support the sector’s growth, productivity and international competitiveness as well as considering regulatory impacts.
In March, the FCA said it planned to retire more than 100 pages of outdated guidance, withdraw hundreds of supervisory publications, and take other steps to reduce burdens on businesses and improve outcomes for consumers.
