FCA and FINMA Finalise the Berne Financial Services Agreement: What It Means for Firms

In November 2025, the Financial Conduct Authority (FCA) and the Swiss Financial Market Supervisory Authority (FINMA) jointly published their long-awaited guidelines for firms under the Berne Financial Services Agreement (BFSA).

The Agreement marks a new chapter in UK-Swiss financial services cooperation — a post-Brexit milestone aimed at simplifying cross-border trade in financial services for wholesale and sophisticated clients, through a framework of mutual recognition.

According to the FCA’s release, the BFSA is designed to uphold high regulatory standards while enabling greater market access and supervisory coordination between the UK and Switzerland. Both countries have recognised each other’s laws and supervisory regimes as achieving equivalent outcomes in financial stability, market integrity, and consumer protection.

What Is the BFSA?

At its core, the BFSA establishes a model for mutual deference — meaning that UK and Swiss regulators will rely on each other’s supervisory frameworks for specified financial sectors.

This includes:

• Cross-border investment services (such as portfolio management, execution, and dealing on own account)

• Insurance services for large corporate clients

• Advisory services provided on a temporary basis

In practical terms, Swiss firms can serve UK wholesale and high-net-worth clients under Swiss prudential rules, and UK firms can serve eligible Swiss clients without needing separate local authorisation.

This structure mirrors similar recognition frameworks seen globally (for example, between the US and Canada) but represents the first of its kind between the UK and a major European financial centre.

What Changes for Swiss Firms

Under the BFSA, eligible Swiss investment services firms can provide cross-border services to UK wholesale clients without direct FCA authorisation — provided they meet the Agreement’s eligibility, notification, and disclosure requirements.

Key points include:

• Swiss firms must be authorised and supervised by FINMA (e.g. as a bank, securities firm, or portfolio manager).

• They must notify the FCA via FINMA’s EHP platform and appear on the FCA’s public BFSA register before providing services.

• Firms must issue pre-contractual disclosures clearly stating that they are not regulated in the UK, that UK compensation and dispute resolution schemes do not apply, and that Swiss law governs their contracts.

• Firms must report annually to the FCA (via FINMA), detailing client numbers, turnover, and any material complaints.

• A firm exceeding £50m in turnover for two consecutive years must provide additional breakdowns of activity.

Firms must also apply specific “high net worth client tests” when dealing with UK-resident clients, requiring proof of net assets over £2 million and explicit client consent acknowledging the loss of UK investor protections.

What Changes for UK Insurance Firms

The BFSA equally benefits UK insurance firms wishing to access the Swiss market. Switzerland has deferred to UK authorisation and prudential requirements for certain classes of non-life insurance supplied cross-border to large Swiss companies.

Highlights:

• Eligible UK insurers can offer general insurance services into Switzerland without a Swiss branch or authorisation, once registered with FINMA.

• Life insurance and retail/SME business remain outside the scope.

• Firms must demonstrate compliance with Solvency II requirements and confirm they provide the same class of insurance outside Switzerland.

• Annual reports to FINMA (with copies to the PRA and FCA) are required by 30 April each year, detailing premiums, classes of business, and covered services.

Insurance intermediaries acting independently of insurers (i.e. not as employees) remain subject to certain Swiss domestic rules but are exempt from localisation requirements.

What Changes for UK Investment Services Firms

From 2026, FCA-authorised investment firms will be able to serve Swiss professional and high-net-worth clients on a cross-border basis without requiring full Swiss authorisation. This streamlined access, built on existing MiFID governance standards, creates a trusted corridor between two of Europe’s most sophisticated financial centres. For many firms, it represents a genuine commercial opportunity to expand into Switzerland with less regulatory friction.

UK investment firms can also provide temporary services to Swiss clients through client advisers under the BFSA framework.

These advisers must be notified once to the FCA and must comply with specific disclosure requirements set out in Annex 5 of the Agreement.

While these permissions are limited to wholesale contexts, they streamline cross-border cooperation and reduce the need for duplicate authorisations.

Who Is Affected

The BFSA affects a broad range of market participants:

• Swiss banks, securities firms, and portfolio managers;

• UK general insurers and insurance intermediaries;

• UK investment advisers and broker-dealers with Swiss clients.

In essence, any UK or Swiss firm providing cross-border services to sophisticated clients now has a structured, compliant route to do so, backed by clear supervisory cooperation between the FCA, PRA, Bank of England, and FINMA.

Key Dates

• BFSA guidelines published: November 2025

• Registrations open: Late 2025 via FCA Connect (UK firms) and FINMA’s EHP (Swiss firms)

• First annual reporting due: 30 April 2027 (for 2026 activity)

What This Means in Practice

For firms, the BFSA represents regulatory simplification, not relaxation.

Firms will still need robust governance, documentation, and annual reporting, but can now avoid costly duplicate authorisations and overlapping compliance regimes.

Immediate Actions for Firms:

• Map out which cross-border services are eligible under the BFSA.

• Review and update disclosure templates to align with Annex 4 and Annex 5 requirements.

• Ensure compliance frameworks, reporting systems, and client onboarding materials capture the new notification and consent requirements.

• Coordinate with compliance and legal teams to align references across internal documentation.

Compliance Angle's View

The BFSA is a landmark achievement, not just diplomatically, but operationally. It sets a new benchmark for pragmatic post-Brexit regulatory cooperation, ensuring UK and Swiss firms can compete internationally without unnecessary barriers.

While much of the Agreement formalises existing best practices, its structured framework and emphasis on mutual trust and supervisory equivalence are major steps toward a modernised, partnership-based regulatory model.

At Compliance Angle, we’re helping firms:

• Navigate BFSA registration and notification processes;

• Draft compliant disclosure and eligibility documentation;

• ntegrate new reporting templates and governance controls

Contact Compliance Angle at info@complianceangle.co.uk or call +44 7427 792594 to schedule a free consultation and ensure your firm stays aligned, efficient and ready for the next phase of UK regulatory reform.