SWITZERLAND Trends and Developments Contributed by: Reto M. Jenny, Andrea Stäubli and Loris Urwyler, Prager Dreifuss AG
and regulatory systems” and are “recognising the right of each Party to regulate and, preserving its regula- tory autonomy, to introduce new measures concern- ing the supply of financial services within its territory in order to meet national policy objectives” (see also BFSA, Article 5). As a result, even if a party introduces such new measures, the “[r]ecognition shall continue to apply” (BFSA, Article 10) unless one party expres- sively withdraws the recognition in accordance with a specified procedure (BFSA, Article 21). Hence, the BFSA pursues a dynamic approach in that it allows for a possible future expansion in scope (BFSA, Article 11). Also, it foresees that the parties shall promote the regulatory approach of recognising the equivalence of financial regulations in international fora on the basis of international standards (BFSA, Article 19 (1)(d)). This approach is boosted by “supervisory and regula- tory co-operation” as implemented by the BFSA in its Chapters 4 and 5. The BFSA establishes broad com- mitments to regulatory co-operation between the UK and Switzerland, including information sharing on new measures, international co-ordination, and collabora- tion on sustainable finance, with a view to expand- ing the scope of the BFSA over time. It also requires the supervisory authorities of both countries to co- operate closely and exchange information in oversee- ing financial service providers under sector-specific arrangements that define their respective responsibili- ties. This supervisory co-operation is specified by the memorandum of understanding between FINMA, the UK Financial Conduct Authority (FCA) and the Bank of England of 22 September 2025. Lastly, the BFSA establishes a Joint Committee com- posed of representatives from the UK and Switzerland to oversee its implementation, serve as a forum for regulatory co-operation, discuss potential expansions, and review its operation every five years. Disputes between the parties are first addressed through con- sultations in the Joint Committee and, if unresolved, may be referred to a non-binding Panel of Experts, as the BFSA does not provide for binding arbitration or direct rights for individuals. As an insurer According to the BFSA, insurers as Covered Financial Services Providers can provide Covered Services to
Covered Clients in Switzerland without the need to establish a branch/agency in Switzerland and under- write the risk qua such local branch/agency. As discussed above, what is unique about the BFSA is that Switzerland and the UK have agreed that the supervisory and regulatory frameworks of each juris- diction are equivalent. As a result, a UK insurer is not only exempt from the need to have a physical pres- ence in Switzerland, but can provide insurance ser- vices while complying with and relying on UK rules and supervision. Unlike before, they are, within the scope of the BFSA, no longer required to obtain Swiss authorisation and comply with most prudential meas- ures (see also the Bank of England’s and FCA’s Guide- lines for firms for the BFSA, of November 2025, para. 3.1). Switzerland agrees to defer to the UK’s authori- sation and prudential rules for UK insurers supply- ing Covered Services to Covered Clients in Switzer- land, thereby exempting them from equivalent Swiss requirements as specified in the Sectoral Annex and the Insurance Supervision Act (ISA, in effect since 1 January 2024) (BFSA, Annex 4 (VI)(A)(a) and (b)). As a broker According to the revised Article 41 (2)(a) ISA, there is a requirement for untied insurance intermediaries (brokers) to establish a domicile, place of residence or branch/agency in Switzerland (localisation require- ment). According to the BFSA, while for a UK broker as Cov- ered Financial Services Provider for Covered Clients in Switzerland and with regard to Covered Services the localisation requirement does not apply (BFSA, annex 4 (VI)(A)(b)(ii)), all other Swiss domestic regula- tory requirements according to the ISA and its imple- menting regulations apply. For instance, UK brokers will have to be registered with FINMA (as an untied insurance intermediary) according to Article 42 ISA. An untied insurance intermediary (broker) in the sense of the BFSA is an insurance intermediary in a fiduciary relationship with and acting in the interest of a Cov- ered Client and not as an employee of an insurance services supplier.
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