The FCA has published FCA 2025/57-2026-01-01.pdf: Berne Financial Services Agreement Instrument 2025, which came into force on 1 January 2026. The instrument implements changes to the FCA Handbook to support firms relying on market access rights under the Berne Financial Services Agreement (BFSA) between the UK and Switzerland. The instrument introduces a new Berne Financial Services Agreement Guide and amends guidance across multiple sourcebooks. Its primary purpose is to clarify the application of the Handbook where deference applies under the Agreement. The instrument does not create new substantive regulatory obligations.
Background: the Berne Financial Services Agreement
The BFSA is a mutual recognition agreement signed on 21 December 2023, designed to facilitate cross-border wholesale financial services between the UK and Switzerland. It establishes deference-based market access arrangements, allowing:
- UK insurers to provide insurance services into Switzerland under Annex 4; and
- Swiss investment firms, registered as BFSA investment firms, to provide certain investment services into the UK under Annex 5, including to high-net-worth and sophisticated clients.
Key Handbook Amendments
- Glossary: New definitions have been added to support consistent interpretation of BFSA provisions:
- BFSA
- BFSA register
- Annex 5 BFSA activity
- Registered BFSA investment firm
These definitions apply throughout the Handbook to clarify which firms and activities fall under the Agreement.
- General Provisions (GEN): A new section GEN 2.4 clarifies how the Handbook applies to firms exercising market access rights under the BFSA:
- GEN 2.4.1R provides that a person is not subject to any Handbook provision to the extent that it would conflict with the UK’s obligations under the BFSA.
- Supporting guidance explains the effect and operation of the rule, particularly where Swiss firms supply investment services into the UK under BFSA Annex 5.
- The instrument specifies that the following Handbook provisions do not apply to Annex 5 BFSA activities where deference applies: parts of PRIN, SYSC, COCON, APER, COBS (excluding 22.4–22.6), ICOBS, DISP, and relevant SUP provisions.
- Conduct of Business Sourcebook (COBS): COBS 6.1ZB implements Annex 5 requirements for UK investment services suppliers using a client adviser in Switzerland:
- Firms must provide Swiss high-net-worth clients with a disclosure document detailing regulatory status, contact information, and services provided before commencing activities.
- Product intervention measures (COBS 22.4–22.6) continue to apply to Swiss firms operating under Annex 5 to protect UK consumers.
- Insurance: Conduct of Business Sourcebook (ICOBS): ICOBS 4.7 applies to UK insurers and intermediaries providing services into Switzerland under Annex 4 of the BFSA:
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- Firms must provide pre-contractual disclosures including regulatory status, Swiss premium taxes, contact information, and governing law and jurisdiction.
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- Ad-hoc disclosures must also be provided where required.
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- Untied insurance intermediaries are relieved only from Swiss localisation requirements and remain subject to other applicable Swiss law.
- Supervision Manual (SUP): Firms providing investment services into Switzerland via client advisers must notify the FCA before commencing such activities, in line with Annex 5 requirements.
- Perimeter Guidance Manual (PERG): PERG has been updated to reflect the effect of HM Treasury implementing regulations, clarifying the regulatory perimeter for firms exercising rights under the BFSA.
- Berne Financial Services Agreement Guide (BFSAG): The newly introduced BFSAG consolidates guidance on the operation of the Handbook for firms exercising BFSA market access rights. It provides practical clarity for:
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- Registered BFSA investment firms providing services from Switzerland into the UK;
- UK insurers and intermediaries providing services into Switzerland;
- Firms supplying investment services in Switzerland through client advisers.
The BFSAG ensures firms understand which Handbook provisions apply and the scope of deference under the Agreement.
What this means for firms
Firms operating, or planning to operate, under the Berne Financial Services Agreement should:
- Familiarise themselves with the new BFSAG;
- Review updated guidance in GEN, COBS, ICOBS, SUP and PERG; and
- Pay close attention to the clarified position on regulatory deference, particularly for insurance intermediaries.
Overall, the FCA views these changes as supporting regulatory clarity, effective competition and international market access, while maintaining appropriate standards of consumer protection and market integrity.
How Complyport Can Help?
Implementing and complying with new FCA Handbook provisions under the Berne Financial Services Agreement (BFSA) can be complex, particularly for firms operating cross-border services between the UK and Switzerland. Complyport helps firms navigate these changes by:
- Reviewing BFSA-related obligations: assessing your firm’s processes, disclosures, and notifications against the new Handbook requirements, including GEN, COBS, ICOBS, SUP, and PERG.
- Advising on regulatory deference and market access rights: ensuring your activities under the BFSA are correctly aligned with UK and Swiss obligations.
- Strengthening compliance controls and reporting frameworks: supporting governance, operational procedures, and risk management to meet FCA expectations.
- Delivering tailored training and guidance: for Compliance, Operations, and Senior Management teams on the practical application of the BFSA and associated Handbook changes.
- Providing ongoing advisory support: helping firms maintain compliance, operational readiness, and regulatory clarity as BFSA requirements evolve.
Contact Us
To understand how these changes may impact your business, or to discuss how Complyport can streamline your compliance with the new Companies House requirements, get in touch to arrange a meeting with one of our Subject Matter Experts.
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