The Financial Conduct Authority (FCA) has called on UK and Swiss firms to submit interest in providing cross-border services as part of the Berne Financial Services Agreement (BFSA).

The BFSA, which was signed in 2023 under the previous government, is a first-of-its kind pact on financial services co-operation between the two countries.

As part of the deal, the UK and Switzerland mutually recognise each other’s domestic laws and regulations on financial services, making it easier for corporate and high net worth clients in the two markets to do business with each other.

It enables the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services.

The UK financial watchdog said that under the treaty, UK insurance companies will be able to provide wholesale insurance services into the Swiss domestic market without requiring Swiss authorisation.

Swiss firms will also be able to provide investment services to UK high net worth clients, professional clients and eligible counterparties, without requiring authorisation in the UK.

According to the FCA, in 2024 UK-Swiss financial services trade amounted to just under £5 billion, making Switzerland one of the UK’s top financial services trading partners.

“This agreement will reduce barriers and ensure open access between the UK and Switzerland for decades to come,” said Ruairi O’Connell, director for international, FCA. “It is part of our work to support growth, by enabling investment, innovation and ensuring the continued competitiveness of our world leading financial services.”

O’Connell said that the regulator is working closely with its Swiss counterparts to put in place mutual supervisory arrangements and create “a streamlined process for both Swiss and UK firms to register their interest.”

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