Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of whether Switzerland’s regulatory and supervisory framework offers protections equivalent to UK standards, particularly regarding (1) market integrity, (2) financial stability, and (3) consumer protection, so that UK markets are not exposed to additional or undue risk under the Berne Financial Services Agreement.

The Berne Financial Services Agreement is an outcomes-based mutual recognition agreement. The Agreement will enhance cross-border trade in wholesale financial services between the UK and Switzerland. Specifically, the BFSA provides new cross-border market access for investment services from Switzerland into the UK and for (re)insurance from the UK into Switzerland.

The Agreement is underpinned by assessments, with the UK and Switzerland each assessing each other’s regulatory and supervisory regimes. The Treasury, Financial Conduct Authority, Bank of England, and Prudential Regulation Authority undertook an assessment of the Swiss regime between 2022 and 2023. Recognition was given on the basis that both regimes achieved equivalent outcomes in terms of consumer protection, market integrity and financial stability.

The Agreement is also supported by a Memorandum of Understanding between the Financial Conduct Authority, Bank of England, Prudential Regulation Authority, and Swiss Financial Market Supervisory Authority signed on 22 September 2025, which sets out arrangements for supervisory cooperation and information sharing. These arrangements will facilitate ongoing dialogue, support the functioning of the Agreement, and ensure both sides can address risks or supervisory developments promptly.

Lastly, the Agreement provides safeguards for the Financial Conduct Authority and Prudential Regulation Authority to manage any residual risk as a result of new market access under the Agreement with regards to protecting financial stability, consumer protection, market integrity and compliance with the Agreement. The Financial Conduct Authority and Prudential Regulation Authority have been provided these powers through the Financial Services and Markets Act 2023 (Mutual Recognition Agreement) Switzerland Regulations 2025.