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THE UK-SWISS FINANCIAL SERVICES RELATIONSHIP
May 26, 2020 | Legal Alert
THE UK-SWISS FINANCIAL SERVICES RELATIONSHIP
Due to the pandemic situation and other challenges countries face today, the financial and related professional services (FRPS) industry is now in need of deepening cross-border cooperation.
Economiesuisse and TheCityUK insist their governments work on the bilateral trade relationship agreement that is based on the mutual recognition of regulation.
Switzerland and the UK are among the leading financial centres worldwide. After the UK's exit from the EU, the deepening of market access for FRPS providers between the UK and Switzerland can only be achieved by signing a new trade agreement. By concluding such an agreement, Switzerland and the UK would make primary progress in the mutual liberalization of market access. This is very important for the banks in particular.
It is offered that market access to allow the cross-border provision of financial services to be expanded in different areas. These areas include banking and investment, asset management, insurance, and financial market infrastructure. It is prescribed that the key principle should be mutual recognition based on comparable outcomes, instead of a line-by-line comparison of the respective regulatory and supervisory regimes.
In the nearest time, Switzerland and the UK should sign a Memorandum of Understanding. This should deepen institutional, regulatory, and supervisory cooperation and reinforce worldwide financial regulatory standards. Besides, the agreement should provide a road map towards the bilateral agreement, outlining a mandate and timeframe as well as the involvement of the supervisory authorities and the industry.
This agreement can be a win-win for both the UK and Switzerland.
Economiesuisse and TheCityUK insist their governments work on the bilateral trade relationship agreement that is based on the mutual recognition of regulation.
Switzerland and the UK are among the leading financial centres worldwide. After the UK's exit from the EU, the deepening of market access for FRPS providers between the UK and Switzerland can only be achieved by signing a new trade agreement. By concluding such an agreement, Switzerland and the UK would make primary progress in the mutual liberalization of market access. This is very important for the banks in particular.
It is offered that market access to allow the cross-border provision of financial services to be expanded in different areas. These areas include banking and investment, asset management, insurance, and financial market infrastructure. It is prescribed that the key principle should be mutual recognition based on comparable outcomes, instead of a line-by-line comparison of the respective regulatory and supervisory regimes.
In the nearest time, Switzerland and the UK should sign a Memorandum of Understanding. This should deepen institutional, regulatory, and supervisory cooperation and reinforce worldwide financial regulatory standards. Besides, the agreement should provide a road map towards the bilateral agreement, outlining a mandate and timeframe as well as the involvement of the supervisory authorities and the industry.
This agreement can be a win-win for both the UK and Switzerland.
Source: https://www.swissbanking.org/en/media/news/switzerland-and-the-uk-are-among-the-world2019s-leading-financial-centres-their-cooperation-is-to-be-enhanced-through-mutual-market-access-and-recognition-of-regulations-a-new-trade-agreement-is-required-to-this-end-this-is-particularly-important-for-the
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.