The document provides reciprocal market access for banks, insurance companies, asset managers and stockbrokers, boosting trade and reducing compliance costs

Britain and Switzerland reached a crucial agreement on financial services on Thursday, opening the door for reciprocal market access for banks, insurance companies, asset managers and stock exchange operators between the two countries. After two years of negotiations, which began after Brexit, the agreement represents a significant step in boosting trade and reducing regulatory burdens for both sides.

Through mutual recognition of regulations and supervisors, the agreement has the potential to ease regulatory burdens and strengthen the UK and Switzerland's positions as major global financial centers. For the UK, this agreement supports its financial sector by addressing the difficulties arising from Brexit, and the EU remains an important partner for the UK financial industry, Reuters reports.

Jeremy Hunt, UK Chancellor of the Exchequer, and his Swiss counterpart, Karin Keller-Sutter, signed the agreement in Bern. Hunt stressed that the agreement is the first of its kind in the world and will bring a level playing field in the market for smaller firms, eliminating the time and costs associated with understanding Swiss regulations.

The agreement also serves Switzerland's interests, strengthening its position as the world leader in wealth management for private clients, with holdings of 2.2 trillion Swiss francs ($2.6 trillion) in 2022. Approval of the deal is now in the hands of the UK and Swiss parliaments.