Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the UK-Switzerland Financial Services Mutual Recognition Agreement on cross-border financial services trade.

The Berne Financial Services Agreement is a ground-breaking mutual recognition agreement which enables financial services firms to provide certain services on a cross-border basis to wholesale and sophisticated clients. It is rooted in the high quality of each country’s regulation.

The Agreement will enhance an already thriving financial services trade relationship with Switzerland. Between 2016 and 2023, UK trade in financial and insurance services with Switzerland grew by 85%. The ease of doing business under the agreement combined with the unprecedented new market access it opens will boost client choice and drive efficiencies in the financial sector – delivering growth in the UK economy and bolstering job opportunities in the sector. A document outlining the benefits for the UK can be found on the Berne Financial Services Agreement gov.uk page alongside the text of the Agreement.

The Government’s priority is to implement the Agreement as soon as possible, by the end of 2025 at the latest, and enter the Agreement into force shortly thereafter

The Agreement includes a mechanism for the UK and Switzerland to expand in scope, including adding entirely new financial service sectors. The Agreement also commits the UK and Switzerland to enter into negotiations with a view to potentially expanding the Agreement to include sustainable finance at the appropriate time.