Summary
The Berne Financial Services Agreement (the «BFSA») is a UK-Swiss mutual recognition agreement for specified cross-border financial services. The BFSA allows eligible firms to provide certain wholesale and high-net-worth services without obtaining a separate local licence, provided the service, client, firm and registration conditions are met.
In practice, the agreement is most relevant for Swiss investment services providers seeking access to UK professional and high-net-worth clients, and for UK insurers and intermediaries seeking to place selected non-life insurance business with large Swiss corporates.
What Is the BFSA and When Did It Enter Into Force?
The BFSA is a mutual recognition agreement, which, rather than harmonising rules, recognises that the UK and Swiss regulatory regimes achieve comparable outcomes. It allows home-state authorisation to be relied on for covered services to covered clients. The agreement was signed in December 2023 and entered into force on 1 January 2026.
The agreement is implemented through cooperation between the UK Financial Conduct Authority (the «FCA»), the Prudential Regulation Authority (the «PRA») and the Swiss Financial Market Supervisory Authority (the «FINMA»). Their supervisory cooperation is important because the BFSA relies on each home regulator confirming that a firm is eligible and in good standing before the host-state register is updated.
Which Services and Clients Are Covered?
The BFSA is not a general retail passport. Its scope is limited to covered services, covered clients, and covered sectors, including:
- Investment services (including ancillary services) supplied to wholesale clients and high-net-worth individuals;
- Non-life insurance services supplied to large corporate clients;
- Asset management arrangements (reflecting regimes already in force); and
- Financial market infrastructure provisions, including recognition of central counterparties, cooperation regarding trading venues, and simplification of certain OTC derivatives requirements.
It is important to underline that the scope of the BFSA does not cover retail financial services, life insurance, and SME general insurance.
For investment services, covered financial instruments include transferable securities, money-market instruments, collective investment schemes or alternative investment funds, and certain derivatives. The inclusion of these instruments is useful for wealth management, portfolio management, and advisory activity, but only where the relevant client falls within the covered-client categories.
Key thresholds include GBP 2 million in net assets for certain UK high-net-worth clients receiving Swiss investment services; CHF 2 million in assets for Swiss high-net-worth clients opting into professional-client status; and, for UK-to-Switzerland insurance, Swiss corporates meeting at least two of the following: CHF 40 million turnover, CHF 20 million balance sheet total, or more than 250 employees.
The high-net-worth thresholds are not only financial thresholds. For Swiss firms serving UK individuals, the firm must also assess whether the client has sufficient expertise, experience and knowledge to make investment decisions and understand the risks and must obtain the client’s written acknowledgements regarding the loss of ordinary UK investor protections.
What the BFSA Changes for Swiss Firms in the UK
For Swiss investment services firms, the BFSA creates a more streamlined route into the UK for high-net-worth clients. To be eligible, the firm must:
- be incorporated or formed in Switzerland;
- be appropriately authorised and supervised by the FINMA;
- be authorised to provide the relevant services in Switzerland, and
- not separately authorised by the FCA for the same services under Part 4A of the Financial Services and Markets Act 2000 (the «FSMA»).
To use the BFSA route into the UK, a Swiss firm must follow the next steps:
- File a notification through FINMA’s EHP platform, identifying the services and client categories it wants to cover.
- Further, FINMA checks whether the firm is eligible and in good standing. If that check is |positive, FINMA confirms this to the FCA, and the FCA adds the firm to the public BFSA register. The register is not a UK licence; it is the public list showing which Swiss firms may rely on the BFSA for the services they have notified
The firm may start supplying those services only after the register entry is complete, and it must continue to comply with the BFSA’s client classification, client consent, and reporting requirements (like submitting annual reporting through FINMA’s EHP platform).
What the BFSA Changes for UK Firms in Switzerland
For UK firms in Switzerland, the principal benefit is for eligible UK insurers and intermediaries providing selected non-life insurance services to large Swiss corporate clients. The route for UK firms is as follows:
- UK insurers notify through FCA Connect;
- Further, the PRA and FCA confirm the eligibility and good standing of the firm, and
- FINMA adds the firm to its public BFSA register before services begin.
For UK insurers, the BFSA route is narrower than a general right to write Swiss business. It is limited to selected non-life insurance lines and large Swiss corporate clients.
The BFSA also eases certain temporary activities by UK client advisers serving Swiss high-net-worth clients, provided the relevant firm has made the required notification and gives the required client information.
For client advisers, the practical benefit is that individual registration in Switzerland may not be required where the BFSA conditions are met. The relief is not unconditional: the UK firm must make the required notification, ensure the adviser activity does not amount to a permanent establishment in Switzerland, and provide the required information to the client.
Is the BFSA a Dual Licence?
No, the BFSA is not a dual licence. It recognises home-state authorisation only for specific covered services, covered clients and covered sectors.
A firm relying on the BFSA, therefore, remains regulated primarily by its home regulator and should not describe itself as locally licensed merely because it appears on a BFSA register. This is an important point for client-facing materials, onboarding packs, and engagement letters.
Dual-Qualified UK and Swiss Lawyers: What Is Needed?
The BFSA is separate from lawyer requalification. However, lawyers advising UK-Swiss clients may also consider dual qualification under the UK-Switzerland Recognition of Professional Qualifications framework and the ordinary SRA and Swiss cantonal rules.
UK Lawyers Qualifying in Switzerland
A UK-qualified solicitor, barrister or advocate seeking Swiss admission generally registers with the relevant cantonal authority and either passes a cantonal aptitude test or completes an adaptation period of effective and regular Swiss-law practice, usually three years and potentially less with suitable experience. During that period, the lawyer uses the home professional title and must comply with applicable Swiss professional rules.
The UK-Switzerland Recognition of Professional Qualifications framework covers UK titles such as solicitor, barrister and advocate, and Swiss titles such as avocat, Advokat, Rechtsanwalt, Anwalt, Fürsprecher and avvocato. The exact application route remains canton-specific, so the relevant cantonal bar authority should be checked before relying on the adaptation-period route.
Swiss Lawyers Qualifying in England and Wales
A Swiss-qualified lawyer seeking admission as a solicitor of England and Wales generally needs a degree or equivalent, passing of SQE1 and SQE2 exams (unless exempt), and must meet the SRA’s character and suitability requirements. Qualified foreign lawyers do not need qualifying work experience.
For Swiss lawyers considering England and Wales, the key point is that qualification is still handled by the SRA route rather than by the BFSA. Existing Swiss qualification and professional experience may assist with an exemption application, especially for SQE2. However, the applicant must be able to evidence the relevant competencies and any required English or Welsh language proficiency.
Practical Points for Firms and Clients
For all firms seeking authorisation through the BFSA, we recommend verifying the following before approaching clients:
- Confirm that the relevant service, client type, financial instrument, and firm status all fall within the BFSA;
- Register before supplying services: BFSA access generally begins only once the relevant register entry is complete;
- Maintain the required client categorisation and notification. Firms should also keep a clear internal record of why a client, service, and financial instrument were treated as covered. That record may be useful if the firm later has to respond to questions from FINMA, the FCA, or the client about the basis on which the BFSA route was used.
Conclusion
The BFSA, no doubt, is a significant development for UK-Swiss financial services. However, it is not an automatic tool that offers access to the provision of all legal services in both jurisdictions. It offers a streamlined route for specified wholesale and high-net-worth cross-border services, subject to strict scope, registration and compliance conditions.
The most useful first step for any firm is to map its intended services against the relevant BFSA annex, i.e., to check who the client is, which entity will provide the service, what instrument or insurance line is involved, whether the firm is already locally authorised for the same activity, and what notification or register entry is required before launch. Fortior Law has offices in London, Geneva and Zurich, and advises on UK-Swiss cross-border matters. For further information or legal assistance, please contact us at info@fortiorlaw.com.
