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The Berne Financial Services Agreement (BFSA) will make cross-border trade in financial services to wholesale and sophisticated clients easier for UK and Swiss firms, based on mutual recognition.
The BFSA also creates a new model for regulatory and supervisory co-operation with the Swiss Financial Markets Supervisory Authority (FINMA).
The Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 (SI 2025/1145) have been made. They make changes to legislation to implement the UK's commitments in the BFSA and will come into force on 1 January 2026. The Regulations create a new exclusion in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) to allow Swiss firms that are registered with the FCA for specific investment services to supply those services without authorisation. The Regulations also make amendments to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) to make sure that Swiss registered firms can engage in financial promotion in certain circumstances without requiring authorisation or approval.
The FCA has now published guidance for firms about the BFSA. In particular, the guidance covers the following areas:
Swiss investment services firms: The UK has deferred to Swiss authorisation and prudential measures for certain cross-border investment services and ancillary services to wholesale clients and high net worth individuals. The guidance covers the requirements for Swiss firms if they are providing services under the BFSA.
UK insurance firms: Switzerland has deferred to UK authorisation and prudential measures for certain insurance services. UK insurers within scope of the BFSA will be able to supply those insurance services into the Swiss domestic market from the UK to covered clients without being required to comply with Swiss authorisation and most prudential measures. The guidance in this chapter sets out the eligibility requirements for providing services under the BFSA, the notification process and compliance obligations such as annual reporting to FINMA. UK insurers and insurance intermediaries should also refer to FINMA's guidance on the BFSA.
UK investment services firms: UK firms must notify the FCA once before providing investment services to Swiss clients through client advisers in Switzerland on a temporary basis. UK firms providing investment services into Switzerland through client advisers must provide covered clients with certain disclosures. The FCA directs relevant firms to the FINMA website for more information.
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