Agreement on Financial Services Set to be Signed by Hunt and Switzerland

21 Dec, 2023

Agreement on Financial Services Set to be Signed by Hunt and Switzerland

The anticipated financial services agreement between the UK and Switzerland, to be formalized by Chancellor Jeremy Hunt during his visit to Bern, holds paramount significance for both countries' financial sectors. This accord aims to streamline market entry for UK businesses into Switzerland and reciprocally open avenues for Swiss entities into the UK market. Its foundation rests on the mutual recognition of legal and regulatory frameworks governing financial operations.

The key objective of this agreement revolves around creating a robust framework conducive to seamless trade in wholesale financial services across borders. The UK Treasury foresees substantial benefits accruing to London's financial hub due to this initiative.

The signing ceremony, set to be attended by Hunt and Swiss Finance Minister Karin Keller-Sutter, underscores Hunt's attribution of the UK's enhanced ability to negotiate autonomous trade agreements, particularly in the financial domain, to the Brexit decision.

The Treasury underscores that the newfound freedom post-Brexit has paved the way for this financial services agreement, emphasizing its role in amplifying the already sturdy relationship between the UK and Switzerland. This bilateral relationship is rooted in a commitment to adhering to global standards and fostering open and resilient financial markets, signifying a spirit of mutual cooperation.

Following Brexit, the UK faced the risk of losing the benefits of its prior trading terms with Switzerland, which were hinged on EU regulations despite Switzerland not being an EU member state. However, this agreement reinstates the UK's enduring access to Switzerland's financial sector and opens doors to broader future trade deals, indicating promising economic prospects.

Labour MP Paul Blomfield lauds the accord for offering much-needed regulatory certainty to UK industries in crucial markets. He underscores the necessity for similar agreements with the EU to align regulations, surmount barriers, reduce costs, and unleash the untapped potential of the UK economy.