Berne Financial Services Agreement: Preparing for Entry into Force

The SBA was pleased to host the seminar on the implementation of the Berne Financial Services Agreement (BFSA).   💡 Representatives from the State Secretariat for International Finance (SIF), HM Treasury (HMT), the Swiss Financial Market Supervisory Authority (FINMA) and the UK Financial Conduct Authority (FCA) shared their insights on the BFSA's structure, the timeline for its entry into force, the recently signed Memorandum of Understanding between the supervisory authorities, and investment services processes. 📍 Furthermore, experts from UBS and HSBC provided valuable information on the scope, benefits, and cost implications of the BFSA. This included a step-by-step pathway that a Swiss bank would need to follow to take advantage of the agreement.   Many thanks to Thomas Koch, Zoe Johnson, Mareva Malzacher, John Battram, Pauline Bearblock, Veronique Nebel and Ghazala Amaral for making this seminar such a success.

🇬🇧🇨🇭The Swiss Financial Market Supervisory Authority (FINMA), together with the UK Bank of England, in its capacities as Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), has signed the attached Memorandum of Understanding (MoU). This MoU implements the cooperation framework established under the Berne Financial Services Agreement (BFSA), signed at the end of 2023, and contributes to strengthening the stability and integrity of the financial markets in Switzerland and the United Kingdom, while enhancing the protection of clients and investors. The MoU will enter into force upon the entry into effect of the BFSA at the beginning of 2026.

Oliver Widmer and Samir Ainouz provide an update on the implementation process with respect to the Berne Financial Services Agreement between Switzerland and the UK. In particular, this update touches upon the recently signed MoU between the two countries' regulatory authorities and upon open questions with regard to the agreement that still remain.   Here are the key facts: - FINMA, FCA, and Bank of England (as PRA) signed an MoU — a key step in the implementation of the BFSA. - BFSA expected to enter into force in early 2026, expanding market access for Swiss and UK institutions. - Operational guidance due November 2025 to clarify remaining questions, especially around “temporary” local operations.   Read more: https://lnkd.in/ebYVuWfq #FinancialServices #MoU #BFSA #LegalUpdate #KnowledgeTransfer #Pestalozzi

🔔 IFSCA Extends Compliance Deadline for CMI Net Worth Norms. The International Financial Services Centres Authority (IFSCA) has extended the deadline for compliance with the revised net worth requirements under the Capital Market Intermediaries (CMI) Regulations, 2025. New deadline: December 31, 2025 (earlier: October 1, 2025)

Can newly founded institutions obtain the status of a small and non-complex institution (SNCI)? Yes, the BaFin has clarified in its Circular 10/2025 that newly founded institutions may obtain the status of a small and non-complex institution (SNCI) if they meet all the criteria set out in Article 4(1) No. 145 of the CRR. Institutions must conduct a self-assessment and, upon fulfilling the requirements, approach their supervisory contact at BaFin. BaFin and Deutsche Bundesbank will then review and confirm the SNCI status where applicable. 👉 Context & Implications: The regulatory framework offers flexibility for new institutions by allowing them to be classified as SNCIs from the outset if they comply with CRR standards.  Newly founded institutions can rely on projected balance sheet figures (submitted under AnzV and Delegated Regulation (EU) 2022/2580) for their first-year assessment.  From the second year onward, actual financial figures (FINREP reporting) apply, gradually building up a multi-year average to verify SNCI eligibility.  Other SNCI conditions, not based on historical data, may be assessed as soon as business operations commence. The SNCI status allows for various simplifications, thus resulting in a lower administrative burden, however, it can also have some pitfalls. For a detailed analysis whether the SNCI status is favorable for your institution contact our team at Advisori. #advisori #BaFin #SNCI #CRR #FinancialRegulation #BankingCompliance

Swiss and the UK supervisory authorities strengthen cooperation in financial services The Swiss Financial Market Supervisory Authority FINMA, the UK Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA) have signed a memorandum of understanding (MoU) to deepen their cooperation in financial services. The agreement outlines the framework for collaboration under the Berne Financial Services Agreement (BFSA), creating new cross-border opportunities in both insurance and investment services.

We are very much looking forward to hearing Matt King's keynote address at the ELFA Annual Conference on 15th October, ‘The limits of easy money - when money drives markets more than fundamentals.’ Matt King is a macro and credit strategist, Founder of Satori Insights, previously global markets strategist and head of credit strategy at Citi. Today he is one of the most widely followed commentators on financial markets. Matt will share his analysis of global macro trends and how they intersect with credit markets, including: · Markets are no longer following regular corporate credit cycles in the way they used to pre-2008 with the result that risk premia end up compressed. ·  Why those premia are compressed is a mix of corporate reluctance to borrow (except when driven by sponsors) and policy pushing too hard. ·  Resulting in too much money chasing too few assets, especially in lev fin, abandonment of covenants and suppression of defaults but with increasing tail risk and low recoveries. · Big picture and conclusions - what rate easing and deregulation can and can't do, and spillovers from government to corporate sector. There are still a few complimentary tickets available for ELFA members via the registration link here on the website: https://lnkd.in/div_4kvz Book today to secure your place. The ELFA Annual Conference starts at 0900am on 15th October at Milbank’s offices in the City of London with expert panels running throughout the day, and networking drinks to finish.

Our latest report - “Regulating for Growth”, aims to provide parliamentarians and policymakers with practical tools to help them scrutinise the work of the Financial Conduct Authority And Bank of England in light of their Secondary International Competitiveness and Growth Objective. Two years in, this is a critical moment to assess measurable outcomes. Regular external challenge through engagement and dialogue from Parliament, HM Treasury, industry and other stakeholders will be crucial to delivering the operational and cultural changes that will make a difference. Lloyd's Lloyd's Market AssociationLIIBA - London & International Insurance Brokers’ Association International Underwriting Association (IUA)

The Eidgenössische Finanzmarktaufsicht FINMA and the Financial Conduct Authority FCA and Prudential Regulation Authority PRA are strengthening their cooperation in financial services and have signed a memorandum of understanding. The memorandum sets out details of the co-operation under the Berne Financial Services Agreement (BFSA) and opens up new cross-border opportunities in insurance and investment services. FINMA CEO Stefan Walter expressed his delight at the signing: "This trilateral agreement reflects the longstanding partnership between our financial centres. It also underscores the close and constructive cooperation between our supervisory authorities". The enhanced cooperation will strengthen the stability and integrity of the financial markets in Switzerland and the UK. It will also improve protection for clients and investors – particularly in the market segments where the BFSA is enabling new cross-border market access. The MoU will take effect when the BFSA enters into force at the beginning of 2026. https://lnkd.in/gAmZWT-n #FINMA #financialmarketsupervision #Switzerland #UK #cooperation

IFRS 9 Financial Instruments: Impact of Foreign exchange (gain/losses). Here is a quick summary FINANCIAL ASSETS - Equity Instrument classified as FVTOCI, the Foreign currency ( gain /losses) will be charged to OCI ( however not presented separately because it's already part of FV change) - All other Financial Assets, the Foreign currency (gain/ losses) will be charged to P/L FINANCIAL LIABILITIES - The impact is charged to only P/L Thumb 👍 Rule - Only Equity Instrument classified as FVTOCI the impact is charged to OCI and in all other cases of Financial Instruments the impact will be in P/L 🫶 #IFRS #audit #insights