PRA and FCA publish guidance on Berne agreement

The PRA and FCA have published guidance for Swiss investment firms and UK insurance and investment services firms on what opportunities the Berne Financial Services Agreement brings them.

• Swiss investment firms can apply to do business in the UK on a cross-border basis, and in the main will not need to comply with PRA or FCA rules, although those already authorised in the UK to provide specific services will need to continue to be compliant. But generally, the process will involve the firm being on the BFSA register on the FCA website and then making appropriate notifications via the FINMA platform. They will then be subject to rules on disclosure and reporting and will be allowed to provide services to individuals only where they meet bespoke high net worth client criteria;
• UK insurers wishing to provide services in Switzerland on a cross-border basis can do so without having to be authorised in Switzerland or comply with most Swiss prudential rules, provided they make appropriate notifications to FINMA. In principle, the BFSA covers only general insurance policies for large companies. They will be subject to Swiss reporting requirements; and
• UK investment firms can provide investment services to Swiss clients through client advisers in Switzerland on a temporary basis provided they notify the FCA and make required disclosures.