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 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.

Rishi Sunak set to struggle to meet key pledge as public debt grows

All Eurotunnel services ‘temporarily suspended’ due to unexpected strikes by French staff

European Super League: EU’s top court rules FIFA and UEFA acted unlawfully in blocking breakaway competition

“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.

Please use Chrome browser for a more accessible video player

The departure from the EU saw London lose some business to EU capitals amid efforts among member states and the European Commission to ease their dependence on London as a financial centre.

The Financial Conduct Authority revealed plans on Wednesday to simplify and speed up company listings.

It was billed as the biggest shake-up of its kind in three decades to help London compete better with New York and other centres for company flotations.

Please use Chrome browser for a more accessible video player

The Switzerland deal could, potentially, be expanded in future to cover wider trading arrangements which remain under discussion.

Chancellor Jeremy Hunt said: “The Berne Financial Services Agreement is a global first and builds on the UK and Switzerland’s strengths as two of the world’s largest financial centres.

“It cements open access for financial services between our two nations for decades to come, helping us grow the economy and serving as a blueprint for future agreements with other key trading partners.”

Miles Celic, who heads the TheCityUK lobby group, added: “This innovative framework not only simplifies engagement in financial services, reduces barriers, and enhances efficiency, but it also strengthens market confidence and fosters innovation.

“It establishes a new and ambitious benchmark for how major financial centres can collaborate to establish gold-standard agreements, contributing to a more resilient, competitive, and interconnected global financial landscape.”

Related posts:

Fears for future of Stanlow oil refinery amid urgent financing talks House prices face upward pressure as ‘for sale’ listings dwindle HS2, the opening of the economy and Premier League broadcasting rights Soaring energy bills underlines continued reliance on dirty fossil fuels Business groups say NI hike will hold back jobs growth at crucial moment in recovery Mixed bag for Ocado as labour shortage hurts retail arm but group wins patent victory BBC hires Bain & Co to review strategy as funding squeeze looms Government officials fly to China to win support for British Steel bailout Government sells £1.2bn of NatWest shares Tesco chairman Allan in talks to sell stake in corporate mentoring firm Ocado-backed robotics start-up Karakuri on brink of collapse Universities warn new immigration rules show Britain is ‘closing ranks’