The chancellor has signed a deal aimed at boosting financial services ties with Switzerland, describing the arrangements as a “global first”.
It is aimed at boosting access to each other’s markets, cutting compliance costs and is based on mutual recognition of laws and market regulations in both countries.
The Treasury said the Berne Financial Services Agreement marked a “ground-breaking pact on financial services cooperation” that was only possible because of the “freedoms” now enjoyed by the UK through its departure from the European Union.
The deal “enables the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services,” its statement said.
“For certain sectors it means that a firm based in the UK will be able to serve clients in Switzerland while largely following UK rules, and vice versa.
“The agreement also secures unique access for British insurance brokers to the Swiss market.
“From the start of 2024, Switzerland will require any non-Swiss firms to establish a base in the country before serving Swiss clients.
“The UK will be the only country in the world not required to do this, putting British brokerage firms at a significant advantage to international competitors as they can continue to do business as they always have done.”
The UK’s financial services relationship with Switzerland was previously based on EU rules despite Switzerland being a non-member of the bloc.
Between 2016 and 2022, UK trade in financial and insurance services with Switzerland grew by 53%, according to Treasury figures, reaching £3.28bn in 2022.
The UK had risked losing that access in the wake of Brexit without a direct treaty.
