The case
The agreement between Switzerland and the UK, which has now been approved by both the Council of States and the National Council today, marks an important step in international financial market integration.
The commentary
The recognition of equivalence in key sectors like banking, investment services, insurance, asset management as well as financial market infrastructures will help foster smoother cross-border operations.
For the Swiss wealth management industry this represents a major development. With the ability to engage directly with UK clients who have assets over £ 2 million, Swiss financial services providers can now tap into a broader market thereby boosting their international competitiveness. This move is not only a benefit for wealth management but also strengthens the broader financial sector by encouraging cooperation and aligning regulations between the two nations.
The agreement brings clarity and simplification to cross-border activities, reducing barriers and ensuring that both countries maintain high standards in their regulatory frameworks. This is expected to create more opportunities for growth, collaboration, and overall stability in the financial markets.
The agreement has yet to be approved by the parliaments of both countries before it can come into force.
Note: The treaty was presented to UK Parliament and was approved in March 2024, published on 13 March 2024.