The UK and Switzerland Expand Cooperation in the Field of Finance

Coordination of the financial system in terms of sustainability is not an abstract concept at all. This is already happening as policymakers and financial supervisors respond to the need to create efficient and resilient financial systems that meet the demands of a rapidly changing world. For example, the UK and Switzerland recently announced deepening cooperation in the field of financial services.

This blog post looks at the main aspects specified in the statement of the state financial regulators (Her Majesty's Treasury and the Federal Department of Finance). We hope that this information may be useful for entrepreneurs who are planning to register a company in the UK or start a financial business in one of the Swiss cantons.

The joint statement includes:

• Intention to expand the cross-border market for financial services between countries. Therefore, those who intend to start financial activities in Switzerland or the United Kingdom should monitor the current market situation, since in the future it may be possible to scale up the business on favorable terms.
• Synchronization of regulation of registered British companies and Swiss firms working with wholesale clients in the following areas:
  • banking;
  • asset management;
  • insurance.
• A protocol of intent to recognize each other's regulatory and supervisory regimes, with significant differences in approaches to regulation of the financial sector in Britain and Switzerland.
• The intention to facilitate access to cross-border provision of financial services for wholesale customers.
• Joining efforts in creating and implementation of an open global financial system.

To achieve these goals, both countries are ready to make the following commitments:

1. Reduce regulatory inconsistencies between jurisdictions;
2. Revise the provisions on cooperation in the field of supervision of the financial industry;
3. Build transparent and manageable procedures in the event of a potential change in the situation in the future.

Given the international nature of the risk that financial institutions are exposed to in today's world, the deeper cooperation between the two countries invites companies to view risks from a new perspective due to the growth of trading activity, the acceleration of company formation processes or the expansion of the financial services market.

Conclusion

The above statement testifies to the readiness of cooperation between the two largest financial centers in Europe. For those planning to start banking in Switzerland, this event opens up the possibility of providing financial services to the UK clients after Brexit, and vice versa.