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On 21 December 2023, Switzerland and the United Kingdom of Great Britain and Northern Ireland concluded the Berne Financial Services Agreement (“BFSA” or “Agreement”). The Agreement strengthens competitiveness and promotes close cooperation between the two international financial centres. It has entered into force on 1 January 2026. On a treaty basis, it establishes mutual recognition of the equivalence of the parties’ legal and supervisory frameworks in selected areas of the financial sector. In this context, FINMA has issued related guidelines.
The Agreement enables or facilitates cross-border business activities for asset management (Sectoral Annex 1), banking (Sectoral Annex 2), financial market infrastructures (including central counterparties, over-the-counter derivatives, and trading venues) (Sectoral Annexes 3a, 3b, and 3c), insurance companies (including insurance intermediaries) (Sectoral Annex 4), and investment services (Sectoral Annex 5). In addition, the BFSA strengthens supervisory and regulatory cooperation, thereby ensuring the stability and integrity of both financial markets and client protection.
FINMA has issued guidelines on sectoral Annexes 4 and 5 intended to facilitate the application of the agreement. This blog post focuses on Sectoral Annex 4 to the BFSA concerning UK insurance companies and UK insurance intermediaries. By contrast, the provision of services from Switzerland to the UK is based on the domestic law of the UK, since the services in question can already be provided cross‑border under UK financial market law.
1. UK insurers
1.1 Scope
The BFSA permits insurance companies established in the UK (“UK insurers”) to offer certain non-life insurance products – excluding accident and health insurance, motor third-party liability and any type of insurance enjoying a monopoly – in Switzerland without having a branch. Insurance products can only be offered to commercial clients that meet at least two of the following three criteria: (i) a net turnover of more than CHF 40 million, (ii) a balance sheet total of more than CHF 20 million, or (iii) more than 250 employees (“commercial clients”).
1.2. Process
In order to offer the above-mentioned insurance services in Switzerland, UK insurers must be authorised for this business and supervised in the UK. Additionally, before commencing the activities in Switzerland, the UK insurer must be entered in the FINMA register. To that end, it notifies the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) that it intends to operate in Switzerland under the BFSA. The FCA/PRA check whether it meets the requirements of the BFSA and whether the UK insurer has a good reputation. If so, the FCA/PRA inform FINMA of the result of its review within 30 days of receiving the notification from the UK insurer. FINMA then enters the UK insurer in the register for UK insurers within 30 days after receiving the information from FCA/PRA. The activity may only be carried out once the entry is visible in the FINMA register.
Updates to the original information follow the same procedure. The same deadlines apply.
1.3 Disclosures to clients
UK insurers must, as part of the initial contact with the insurance taker, provide the following information before the contract is concluded:
- company name and address;
- contact details of the UK insurer for (i) obtaining information regarding training of employees active in distribution, (ii) addressing complaints, and (iii) correcting inaccurate information regarding the distribution activity of the UK insurer;
- disclaimer that the UK insurer is authorised and supervised under the law of the UK and is not authorised and supervised by FINMA;
- disclaimer that the insurance taker is personally responsible for paying the stamp duties levied in Switzerland on insurance premiums to the competent tax authority; and
- place of jurisdiction and applicable law of the contract to be entered into.
This information must be presented clearly and prominently and provided to the client in a text-based format that can be documented (paper-based or electronically).
The BFSA’s transparency obligations mentioned above are supplemented by existing disclosure requirements, in particular those set out in the Insurance Contract Act.
1.4 Periodic reporting to FINMA
By 30 April each year, UK insurers listed in the FINMA register must submit to FINMA information for the previous calendar year, including:
- the company name;
- the insurance services provided in Switzerland; and
- if the insurer generated more than CHF 5 million in gross premiums from BFSA activities, the total gross premiums for the reporting period, broken down by class of insurance.
The company's initial report is due by 30 April of the year after its entry in the FINMA register under the BFSA. Information must be provided via FINMA’s electronic platform (EHP).
2. UK untied insurance intermediaries
2.1 Scope
Under the BFSA, UK untied insurance intermediaries (“UK insurance intermediaries”) may carry on insurance intermediation in Switzerland without establishing a Swiss branch. However, they remain subject to the provisions of Swiss regulatory law regarding supervision and registration.
They may only distribute certain non-life insurance products to commercial clients (see section 1.1 above).
2.2 Process
UK insurance intermediaries must register with FINMA as insurance intermediaries through FINMA’s electronic platform. Therefore, FINMA will provide the necessary registration materials. Once the UK insurance intermediaries have completed the registration process, they will be entered in the register of untied insurance intermediaries of FINMA.
One registration requirement is that UK insurance intermediaries possess the skills and knowledge necessary to perform their activities. According to FINMA’s guidelines, any person who is authorised under UK law to carry out specific activities in the UK is likewise authorised to carry out those activities in Switzerland.
2.3 Disclosures to clients
UK insurance intermediaries are subject to the disclosure requirements of Swiss supervisory law. These include:
- name and address;
- whether the intermediation is tied or untied and, if tied, the name and address of the insurance companies on whose behalf they act;
- how to obtain information about the training and continuing education of the relevant insurance intermediary;
- the person who can be held liable for negligence, errors, or incorrect information in connection with their intermediation activities; and
- the processing of personal data, in particular the purpose and scope of the processing, the recipients of the data, and the retention of the data.
Any conflicts of interest must be disclosed to insurance takers before the insurance contract is concluded if a disadvantage to the insurance taker cannot be ruled out. If UK insurance intermediaries receive compensation from the insurer or third parties, they must explicitly disclose this to the insurance taker and obtain the insurance taker’s written waiver of any right to have that compensation passed on to them.
In addition to the above, UK insurance intermediaries must provide the following information to the client before concluding the agreement:
- disclaimer that the insurance taker is personally responsible for paying the stamp duties levied in Switzerland on insurance premiums to the competent tax authority; and
- place of jurisdiction and applicable law of the contract to be entered into.
This information must be presented clearly and prominently and provided to the client in a text-based format that can be documented (paper-based or electronically).
2.4 Periodic reporting to FINMA
UK insurance intermediaries are subject to the annual reporting requirement under article 190b of the Insurance Supervision Ordinance. Sole proprietorships and partnerships, legal entities, and natural persons in an employment relationship must provide key figures and information to verify that UK insurance intermediaries meet the registration requirements, have a good reputation, and provide assurance of compliance with the obligations under the Insurance Supervision Act. The information must be submitted via FINMA’s electronic platform by 31 May of the following calendar year.
3. Conclusion
UK insurers remain under FCA/PRA supervision for both their UK and Swiss activities. However, they are also subject to reporting obligations to FINMA.
In contrast, UK insurance intermediaries fall under FINMA supervision for their activities in Switzerland and are also subject to reporting obligations towards FINMA.
How can we help?
Cross‑border activities increase business complexity and often raise numerous questions. Thanks to its international focus, PwC can provide targeted support to both insurance companies and untied insurance intermediaries, particularly in the following areas:
- Registration as an insurance intermediary with FINMA
- Addressing questions related to, and establishing, a robust corporate governance framework
- Drafting of client information documents
Related article on the Berne Financial Services Agreement
New opportunities for Swiss financial institutions in the UK
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