Switzerland and UK much closer in financial matters
The objective of Bern and London is the cross-border market for numerous services in the areas of insurance, banking, asset management and capital…
In a virtual meeting on Wednesday 27 January, the Finance Ministers of Switzerland and the United Kingdom agreed on the additional measures necessary to negotiate an agreement on mutual recognition in the financial sector.
Ueli Maurer, Federal Councillor, and Rishi Sunak, Chancellor of the Exchequer, also agreed on a normalization of stock exchange equivalence as of February 3 of the same year.
First pour parler between the two countries in June 2020
In June 2020, the ministers of both Berne and London had already expressed their intention to conclude a financial services agreement between the two countries in a joint statement.
The aim is to permit cross-border market access for a wide range of financial services in the areas of insurance, banking, asset management and capital market infrastructure.
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During the virtual meeting held via videoconference on 27 January 2021, both Finance Ministers drew up a positive interim balance sheet on the exploratory talks held so far.
They also agreed on the additional measures necessary for concrete negotiations on the individual topics in the coming months.
Mutual recognition of rules and supervision
The agreement desired by Switzerland and the UK will be based on the principle of mutual recognition of both the supervisory framework and the applicable financial market regulations.
Ueli Maurer and Rishi Sunak also discussed the UK’s recognition of Swiss stock exchanges and the measure to protect their infrastructure, which is still in force.
Both ministers reiterated that, in the area of stock exchanges, progress has been made in normalizing Swiss-British relations.
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The UK Parliament is currently considering the relevant regulation recognizing the equivalence of Swiss stock exchanges and is expected to approve it with effect from February 3, 2021.
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Soon after, the measures taken by Switzerland to protect the infrastructure of Swiss stock exchanges will no longer apply to the UK.
International financial stability as a mantra
A financial services agreement would enable Switzerland and the UK to reaffirm their commitment to open financial markets and international financial stability and to consolidate their position in Europe as major global financial centers.
To this end, both parties are committed to protecting investors and consumers and to ensuring market integrity and financial stability in accordance with the highest regulatory standards.
