The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) jointly published guidelines for firms considering providing services under the Berne Financial Services Agreement (BFSA), setting out supervisory expectations, key operational considerations and how firms should meet relevant regulatory standards. The release also includes a memorandum of understanding (MoU) between the Swiss Financial Market Supervisory Authority (FINMA), the FCA and the Bank of England, including in its capacity as the PRA, establishing arrangements for supervisory cooperation and information sharing under the BFSA. The outcomes-based BFSA is a mutual recognition agreement between the United Kingdom and Switzerland that takes effect on 1 January 2026 and provides new market access in selected areas. It enables UK insurers to provide certain wholesale insurance services in Switzerland without Swiss authorisation, and allows Swiss firms to provide certain investment services to sophisticated clients in the UK without UK authorisation. The MoU, which is not legally binding and does not supersede domestic laws and regulations, applies to cooperation within the insurance and investment services sectoral annexes and covers requested and unsolicited information sharing, confidentiality and onward disclosure controls, and formal dialogue and host intervention processes. Sector-specific annexes also set notification and registration flows, including “section IV” notices, public registers maintained by FINMA (for UK insurers) and the FCA (for Swiss investment suppliers), and “good standing” confirmations within 30 days by the relevant UK authority for insurance notices and within 60 days by FINMA for investment services notices, alongside annual reporting to the host authority. Ahead of BFSA entry into force, the FCA will consult FINMA on the form and wording of required pre-contractual disclosures for investment services and complete that consultation before the BFSA becomes effective, while the UK authorities and FINMA undertake to hold bilateral consultations to agree fixed annual reporting deadlines. The MoU takes effect when the BFSA enters into force, and the PRA and FCA will determine which is the “relevant UK authority” for different MoU provisions and jointly notify FINMA.
Prudential Regulation Authority 2025-09-22
United Kingdom's Prudential Regulation Authority and United Kingdom's Financial Conduct Authority publish Berne Financial Services Agreement guidance and supervisory cooperation memorandum with Swiss Financial Market Supervisory Authority
The Prudential Regulation Authority and Financial Conduct Authority issued guidelines under the Berne Financial Services Agreement (BFSA), detailing supervisory expectations and regulatory standards. Effective 1 January 2026, the BFSA allows UK insurers and Swiss firms to provide certain services without local authorisation. A memorandum with the Swiss Financial Market Supervisory Authority outlines cooperation and information sharing, with annexes detailing notification, registration, and reporting requirements.