Sustainability in the financial system can be achieved by coordination. The modern world is changing quickly and requires financial systems to meet its new demands. That is why policymakers and financial supervisors are working to make the systems efficient and resilient. To illustrate, Switzerland and the UK have recently made a public announcement about forming even deeper cooperation in financial services.
In this article, we will do our best to describe the key details of the financial officials’ statement (the Federal Department of Finance and Her Majesty’s Treasury). We are convinced that this piece of information can come in handy to those who are about to register a business in Switzerland, one of its cantons, or in the UK.
Cooperation goals
The official statement included these aspects:
- The intention of facilitating the access to the provision of cross-border financial services to wholesale clients;
- The intention to expand the cross-border market of financial services between the two countries. For businessmen in the UK or Switzerland this means that thanks to this intention their companies could be scaled up more easily in the future;
- Regulation synchronization of Swiss and British firms that work with wholesale clients in the fields of banking, asset management, and insurance;
- The intention of recognizing mutual regulatory and supervisory systems (although they are very different in the UK and Switzerland);
- The efforts to create and use an open global financial system.
Commitments from both sides
To achieve the goals presented in the statement, the countries are prepared for the following commitments:
- To reduce inconsistencies in regulation between two jurisdictions;
- To revise the cooperation provisions in the sphere of financial industry supervision;
- To create transparent and controllable procedures in case the situation of financial systems changes in the future.
The risk that financial institutions are exposed to today has gained international character. That is why international cooperation helps companies to look at those risks from a new point of view since the trading activity is growing, the company formation processes are getting faster, and the financial services market is expanding greatly.
Conclusion
The statement announced by the UK and Switzerland makes it clear that the two countries are prepared to deepen their cooperation in the financial sector. The key fact about this project is that these countries are truly Europe’s financial centers. Given the presence of Brexit, this cooperation gives new possibilities of providing financial services from Switzerland to the UK and vice versa.
COREDO has incredible specialists who are monitoring the global market constantly to help you always be up to date with the news of the financial sector in Europe. Contact us and schedule a personal consultation where you can ask our experts all the questions you have about starting a business in Europe.