November 4, 2025

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by: kiran

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Tags: "Regulation"

Unlocking Swiss Market Access: What the Berne Financial Services Agreement Means for UK Insurers and Intermediaries

In a post-Brexit landscape where regulatory alignment remains rare, the UK–Switzerland Berne Financial Services Agreement (BFSA) marks a breakthrough for cross-border insurance access.

Due to come into force in early 2026, the BFSA enables eligible UK insurers and intermediaries to supply selected non-life insurance services directly to Swiss corporate clients without needing Swiss licensing or a local presence.

Built on principles of mutual recognition, the agreement allows firms to operate under UK regulatory oversight while servicing sophisticated Swiss clients. It creates new opportunities for insurers and intermediaries but also introduces defined eligibility, compliance, and disclosure obligations.

Below, we outline the key market access implications and the steps firms should take now to prepare.

1. Direct Market Access for UK Insurers – Expanded Opportunity

UK-authorised insurers will be able to offer selected non-life insurance classes such as D&O, cyber, marine, and W&I to large Swiss corporate clients on a cross-border basis.

The BFSA removes the need for Swiss licensing or a physical branch, provided firms meet strict solvency, governance, and disclosure requirements. This creates a competitive advantage for UK-based insurers positioned to serve international corporate risks.

2. Exemption from Local Presence Rules for UK Intermediaries

UK intermediaries gain a unique benefit under the BFSA: they can continue to serve Swiss clients directly from the UK, without the need to establish a Swiss branch or tied intermediary relationship.

This exemption applies only to UK brokers; intermediaries from other jurisdictions remain subject to Switzerland’s local presence requirements.

3. Wholesale Business Only – Retail Out of Scope

The BFSA applies exclusively to wholesale clients meeting defined size or sophistication criteria. Retail and life insurance products are excluded from the agreement.

Firms must take care not to target Swiss consumers or SMEs, ensuring marketing and distribution strategies remain within the permitted wholesale scope.

4. Eligibility and Notification Requirements

To operate under the BFSA:

  • Insurers must notify the PRA/FCA and appear on FINMA’s BFSA register.
  • Intermediaries must be listed on FINMA’s intermediary register, though no FCA notification is required.
  • Only insurers meeting Solvency II standards and Swiss conduct expectations will qualify.

Early assessment and preparation for these notifications will be critical to secure access ahead of implementation.

5. Swiss Conduct Rules Still Apply

While Swiss prudential requirements are waived for UK firms, Swiss conduct and disclosure obligations remain fully in force.

This includes:

  • Pre-contract disclosures tailored to Swiss standards
  • Training and professional knowledge requirements for intermediaries
  • Data handling and client information protections

Firms must ensure compliance frameworks reflect both UK and Swiss regulatory expectations.

Next Steps for Firms

To position for early market entry, UK insurers and intermediaries should begin preparations now:

  • Eligibility Check: Confirm whether your firm, products, and clients meet BFSA criteria (e.g. permitted classes, solvency position, client segmentation).
  • Register Preparation: Plan FCA Connect notifications (for insurers) and liaise with FINMA for intermediary registration.
  • Client Segmentation: Identify Swiss “Covered Clients” and review distribution approaches accordingly.
  • Disclosure Readiness: Develop compliant pre-contract disclosure templates aligned with Swiss conduct rules.
  • Training and Competency: Ensure staff advising Swiss clients meet professional standards by 2026.

With implementation approaching, proactive preparation will help firms secure early-mover advantage in the Swiss market.

How Padda Consulting Can Help

Padda Consulting supports insurance firms in preparing for BFSA implementation through tailored regulatory and operational solutions:

  • BFSA Eligibility Reviews – Assess regulatory readiness for cross-border market access.
  • Disclosure Compliance – Design Swiss law-compliant client communications and onboarding materials.
  • Governance Briefings – Deliver strategic updates for boards and compliance committees on BFSA obligations.
  • Swiss Intermediary Training – Provide staff workshops on Swiss conduct requirements and professional standards.

To discuss how your firm can unlock Swiss market opportunities under the BFSA, please get in touch.