Chancellor Jeremy Hunt has signed a contract that, according to him, will make it simpler for financial firms in the United Kingdom and Switzerland to conduct business with one another. Financial services trade between the United Kingdom and Switzerland is valued more than three billion pounds.
Because of the new Berne Financial Services Agreement, Switzerland and the United Kingdom will acknowledge and accept the regulations that are in place in each other’s countries. “We’re opening each other’s markets up to the other in a way that will boost competition and choice,” according to Mr. Hunt. The Prime Minister stressed that the agreement could only be reached because the United Kingdom is not a member of the European Union.
According to Mr. Hunt, the “new type” of agreement moves away from “aligning legal structures” and can serve as a model for future business transactions. According to the arrangement “firms based in the UK will be able to serve Swiss clients while largely relying on familiar UK firms, and vice versa for Swiss firms” . It is expected that businesses operating in “asset management, wholesale insurance, and banking markets” will reap the largest benefits, as stated by Mr. Hunt.
Since June 2020, when Prime Minister Rishi Sunak was serving as chancellor, negotiations have been in progress. The fact that the transaction is “dynamic” has been welcomed by the heads of British financial institutions. This indicates that the relationship will develop over time as a result of changes in the regulations that govern both markets.
