On 21 Dec, UK and Switzerland signed a financial deal that will make it easier for both their financial firms to deal with each other. Financial services trade between the two parties is said to be nearly £3bn and is therefore a lucrative arena for UK to pursue especially post Brexit.
The Chancellor of the Exchequer Jeremy Hunt and the Swiss Head of Finance, Karin Keller-Sutter signed the treaty to seal mutual recognition in Switzerland’s capital Bern on Thursday
Dubbed as ‘The New Berne Financial Services Agreement’, it is said to bolster openness by recognizing the regulations of both parties.
London’s status as the top European financial center has been challenged in recent years. Factors such as Brexit, regulatory changes and increased competition from other EU financial centres have led to some companies relocating and moving their share listings away from the Britain. This deal might bring respite for the nation.
Highlights of the Deal
Britain and Switzerland signed a comprehensive financial services deal aimed at fostering reciprocal market access for banks, insurers, asset managers and stock exchanges. 
The agreement which is reportedly 87 pages long is intended to boost trade and reduce compliance costs. This deal is especially important for Britain’s financial services industry, which has looked for new opportunities globally following Brexit as it was largely cut off from the European Union, its former primary customer.
UK- Swiss Deal’s significance in Post Brexit Era
Financial leaders in the UK are hoping that the recently signed Swiss deal could serve as a starter for more agreements with other major financial centers in the upcoming years. There is particular mention of Singapore as a potential candidate for similar agreements.
This throws light on UK’s efforts to establish new partnerships and maintain its global financial standing. Lately, London’s position as the primary European financial center is being challenged especially with the shift of trading in shares of European companies to exchanges in cities like Paris and Amsterdam.
In addition to the financial services agreement, the UK is also actively negotiating a more wide ranging free trade agreement with Switzerland. This new trade deal aims to cover a wider range of economic sectors beyond just financial services which shows an effort being made to strengthen the economic ties and cooperation between the two countries.
The UK government is working to make London more appealing globally after Brexit. They have made large scale changes to financial regulations to compete with cities like Paris and Frankfurt. A year ago, Chancellor Jeremy Hunt introduced the “Edinburgh Reforms,” including measures like removing a cap on bankers’ bonuses and letting insurance companies invest in long-term assets. Significant steps have been taken in overcoming financial regulations to attract more businesses to the UK. These changes are seen as a way to use post-Brexit regulatory freedom to benefit the UK economy.
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