Switzerland and UK Sign Mutual Recognition Agreement for Financial Services

Get the latest insights on the new agreement between Switzerland and the UK and its significance for the financial industry.

The financial centres of Switzerland and Britain took a significant step towards closer collaboration as Swiss Finance Minister Karin Keller-Sutter and her British counterpart, Jeremy Hunt, signed an agreement on the mutual recognition of financial services in Bern on Thursday. This landmark agreement covers the recognition of equivalence in various areas, including banking, securities services, insurance, asset management, and financial market infrastructures for professional clients.

According to a press release issued by the Federal Department of Finance, the agreement will pave the way for cross-border business activities for Swiss providers, particularly in the area of asset management. Notably, the agreement will allow British private clients with assets exceeding £2 million to be served directly across borders in the future.

Keller-Sutter emphasized the long-term benefits of this agreement, stating that it will help to maintain and strengthen the international competitiveness of the Swiss financial centre. However, it is important to note that the agreement will require approval by the parliaments of both countries before it can enter into force.

The mutual recognition agreement signed between Switzerland and Britain marks a significant milestone in strengthening their financial ties. This agreement is expected to open up new opportunities for cross-border business activities and enhance the international competitiveness of the Swiss financial centre. More!