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The City of London Corporation in partnership with TheCityUK has today (11 March) hosted an event involving the UK and Swiss governments which explored the landmark Berne Financial Services Agreement between the two countries. A new report, "The Berne Financial Services Agreement: Explaining the UK-Switzerland Agreement on Mutual Recognition in Financial Services”, produced by the Corporation in collaboration with Clifford Chance, underpinned the conversations.
The event took place at Guildhall and involved a high-level discussion of the agreement by The Economic Secretary to the Treasury, Bim Afolami MP and the Swiss Ambassador to the UK, Markus Leitner. Senior representatives from major businesses of both countries were also in attendance.
The Berne Financial Services Agreement marks the first broad Mutual Recognition Agreement in financial services between two jurisdictions anywhere in the world. The deal was signed in December and it is moving towards ratification by both countries, with proactive steps being undertaken to implement its provisions into their respective domestic laws.
The event and report explored how the deal will work in practice, the opportunities it presents for businesses and what further steps could be taken to build on the Agreement.
The UK and Switzerland are the two largest financial centres in Europe, with the sectors in both countries worth £275bn and £82bn respectively. The UK and Switzerland are also negotiating a new Free Trade Agreement (FTA) to complement the Berne Financial Services Agreement with other provisions that enhance trade in financial and other professional services.
Policy Chairman of the City of London Corporation, Chris Hayward said:
“The City of London has long been a supporter of free trade and open markets, we have been very active in facilitating discussions around this agreement and this latest event continues that tradition.
“The UK is the largest net-exporter of financial services in the world yet for far too long financial services, have been excluded from free trade agreements and indeed almost any form of international arrangement. We must play to our strengths and flip our trade policy. This landmark deal is the first step in addressing that. It will deliver huge benefits for firms in terms of increased market access and cross-border investment.
“We hope that this Mutual Recognition Agreement sets a new precedent for UK Financial Services Trade.”