Federal Council adopts dispatch on agreement with the United Kingdom on mutual recognition in financial services
The Federal Council
Bern, 04. 09. 2024 - At its meeting on 4
September 2024, the Federal Council adopted the dispatch on the
approval of an agreement between Switzerland and the United Kingdom
(UK) on mutual recognition in financial services. The agreement boosts
competitiveness and fosters the close cooperation between the two
major international financial centres.
The agreement is the
first time two countries have concluded an international treaty on the
equivalence of their respective legal and regulatory frameworks in
selected financial areas. It will enable or simplify access to the
other party's market and is supplemented by an enhanced regulatory and
supervisory cooperation, which will ensure stability, integrity and
the protection of clients.
The agreement covers the
recognition of equivalence in the areas of banking, investment
services, insurance, asset management and financial market
infrastructures for sophisticated clients. In the case of financial
services, especially wealth management, Swiss providers will be
enabled to engage in cross-border activities. In future, private
clients from the UK with assets exceeding GBP 2 million can be
provided with cross-border services directly.
On insurance,
the agreement covers selected lines of the non-life insurance business
for large corporate clients, where UK insurance companies can now
engage in cross-border activities. The agreement specifically excludes
accident, health and most kinds of liability insurance, as well as
monopoly insurance of all kinds for professional policyholders. Swiss
companies can already provide cross-border insurance services for
large corporate clients under current UK law, which is expressly
confirmed by the agreement.
The agreement, which was signed by
Federal Councillor Karin Keller-Sutter and the then UK Chancellor of
the Exchequer Jeremy Hunt on 21 December 2023, requires approval by
the parliaments of both countries before it can enter into
force.
Address for enquiries
Communications State
Secretariat for International Finance SIF Tel. +41 58 462 46 16,
info@sif. admin. ch
Publisher
The Federal
Council
https://www. admin. ch/gov/en/start. html