The Berne agreement and the Italian question

A mutual recognition agreement after Brexit

The departure of the United Kingdom from the European Union created a partner for Switzerland that faced the same problem from the other side: a large financial centre outside the single market that wanted access for its firms to a neighbouring market. The two governments announced their intention to negotiate a mutual recognition agreement in a ministerial joint statement of 30 June 2020. They signed the Berne Financial Services Agreement (BFSA) on 21 December 2023. The Swiss Parliament approved it on 21 March 2025, no referendum was requested, and the agreement entered into force on 1 January 2026.¹ Its technique differs from that of the European single market. It does not harmonize the parties' laws and creates no common institutions with powers over them. Each party recognizes that the other's regulation and supervision in the covered areas achieve comparable outcomes, and each defers to the other's authorization and supervision of the firms concerned. The agreement provides for three pathways of access. Under the first, deference, the host state relies on the home state's authorization. The second is the host state's existing domestic law, where that law already permits the activity, and the third consists of other arrangements agreed between the parties.²

The agreement covers banking and investment services, asset management, insurance and financial market infrastructure, including central counterparties, trading venues and over-the-counter derivatives. It excludes retail clients. In the United Kingdom, Swiss providers may serve high-net-worth individuals with net assets of more than GBP 2 million together with professional and institutional clients. In Switzerland, British providers may serve high-net-worth individuals with net assets of more than CHF 2 million and professional clients within the meaning of the Financial Services Act. Deposits and lending to high-net-worth and professional clients are covered, while consumer credit is excluded. British insurers are exempt from the Swiss requirement of a local presence for certain lines. A Swiss firm that wishes to use the agreement must have its eligibility confirmed by the Swiss Financial Market Supervisory Authority (FINMA), notify its activity through FINMA's platform and be entered in a public register of the British Financial Conduct Authority (FCA). It must inform its clients that it is not supervised by the FCA and comply with reporting and consent obligations.³

In figures. The Berne Financial Services Agreement was signed on 21 December 2023 and entered into force on 1 January 2026. It opens the British market to Swiss providers for high-net-worth individuals with net assets above GBP 2 million and for professional clients, and the Swiss market to British providers for clients with net assets above CHF 2 million and professional clients. Retail clients and consumer credit are excluded.⁴

Notes

1. Darko Stefanoski, "The Berne Financial Services Agreement is now live: how it transforms UK–Swiss market access", EY Switzerland, 16 January 2026, https://www.ey.com/en_ch/insights/financial-services/the-berne-financial-services-agreement-is-now-live-how-it-transforms-uk-swiss-market-access. The article gives the joint statement of 30 June 2020, the submission to the Swiss Parliament on 4 September 2024, its approval on 21 March 2025 and the expiry of the referendum period in July 2025 without a referendum. ↩
2. Stefanoski (above). ↩
3. Stefanoski (above). ↩
4. Stefanoski (above). ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.