Disclaimer: This chapter was last updated on 15 September 2023 and does not reflect any subsequent developments. The information provided is intended for general informational purposes and should not...

Update On 4 September 2024, the Swiss Federal Council approved the dispatch on the Berne Financial Services Agreement (the Agreement). The Agreement is a landmark international treaty that recognises the equivalence of the legal and regulatory frameworks in selected financial sectors of both countries and aims to streamline cross-border financial services between these two major international financial centres. Supplemented by enhanced regulatory and supervisory cooperation to ensure stability, integrity and customer protection, the agreement will facilitate access to each other's markets. Background In particular, the Agreement covers the recognition of equivalence in the areas of banking, investment services, insurance, asset management and financial market infrastructures for sophisticated clients. For asset management services, the Agreement confirms the existing mutual access for marketing, including advertising and offering collective investment schemes to per se professional clients, institutional clients/eligible counterparties and elective professional clients. It also acknowledges the ability of UK and Swiss financial services firms to delegate portfolio and risk management activities to financial services providers in both jurisdictions. With regard to banking and investment services, the Agreement allows Swiss financial service providers to provide financial services, in particular portfolio management and investment advice, to per se professional clients, eligible counterparties as well as high net worth individuals with assets in excess of GBP 2 million either on a cross-border basis or as part of a temporary local operation (without prejudice to UK visa and other entry requirements). For UK financial service providers, the Agreement adds additional flexibility for client advisers acting on behalf of UK investment services firms as such advisers will no longer need to individually register with Swiss registration bodies to serve certain high net worth clients. Instead, their firm can give confirmation on their behalf that they meet the prerequisites for giving business or investment advice to Swiss clients. However, not all high net worth clients as defined under the Swiss Financial Services Act (FinSA) are covered by the Agreement and UK financial service providers that are exempt from the registration requirement under the Agreement must still ensure that some specific requirements prescribed by FinSA are met. Further, temporary presence in Switzerland of UK client advisers is possible (without prejudice to the respective visa and other entry requirements of Switzerland). For central counterparties (CCPs), the Agreement provides for a regulatory recognition by both Switzerland and the UK. This will ensure that Swiss and UK CCPs can provide their services with greater certainty. The Agreement also includes a commitment to firm up current access to trading venues (e.g. stock exchanges and multilateral trading facilities). With respect to non-centrally cleared OTC derivatives, Swiss and UK counterparties will be free to rely on either recognised Swiss or UK risk mitigation rules (subject to UK standards and supervision of initial margin models and variation margin on physically settled FX swaps and forwards applicable to UK counterparties in accordance with UK domestic law). For insurance services, the Agreement allows Swiss insurance undertakings to provide cross-border insurance services to large UK corporate clients. Reciprocally, the Agreement offers the same to UK insurance undertakings in Switzerland. The recognition concerns certain lines of non-life insurance, including liability insurance in specific and selected lines of business for professional policyholders. Provision of life, accident and health insurance, liability insurance for non-covered lines of business, monopoly insurance of any kind or business interruption insurance are not in-scope and do not benefit from mutual recognition. Based on the Agreement, non-tied insurance intermediaries in the UK are also relieved from the new Swiss localisation requirement, which entered into force on 1 January 2024. This gives them an advantage over their competitors from all other jurisdictions, which have to establish a local presence in Switzerland. Timeline The Agreement was signed by the Swiss Federal Council and HM Treasury in the UK on 21 December 2023. Before it can enter into force, the Agreement must be approved by the parliaments of both countries. The dispatch is expected to be debated by the first chamber of the Swiss parliament in its winter session in December 2024, followed by a review by the second chamber in spring or summer 2025. Subsequently, the referendum period will begin. The timetable for this process in the UK Parliament is unknown. The earliest possible date of entry into force of the Agreement is not expected to be before 1 January 2026.

An interview with Tina Balzli in Bilanz

Tina Balzli, partner at CMS Switzerland, spoke with Sandra Willmeroth, editor at Handelszeitung, about her career as a lawyer and her expertise in the areas of banking & finance, crypto and FinTech. To read the full article (in German), click on the  button below. To the article 

On 21 December 2023, the Swiss Federal Council and HM Treasury in the UK announced the signing of an agreement on mutual recognition in specific areas of financial services between Switzerland and the UK referred to as the Berne Financial Services Agreement (the Agreement). The conclusion of this ground-breaking Agreement is the culmination of more than two years of negotiations following the signing of a Joint Statement on 30 June 2020 aiming at enhancing cooperation in financial services between Switzerland and the UK. 

Zurich,  Novem­ber 2023A team of CMS Switzerland and CMS Luxembourg, lead by partner Matthias Kuert, advised Float Finance AB, Stockholm, Sweden, on legal and tax aspects of a tokenized debt instrument issued under Swiss law by a Luxembourg Special Purpose Vehicle. The instrument labelled FLOAT1 is one of Europe's first private debt asset tokens, and a great example of a tokenized financial instrument issued under the landmark Swiss DLT legal framework. The FLOAT1 token offers investors access to a diversified portfolio of private SME loans to European SaaS and technology businesses. Float worked together with banking partner Sygnum Bank AG, Zurich, Switzerland, and senior lender, Fasanara Capital Ltd, London, England (one of Europe's largest FinTech credit funds), to tokenize and issue the debt instrument within a fully regulated environment. By way of the FLOAT1 token, Float brings illiquid real-world financial assets onto the Polygon Labs blockchain to make them accessible to investors and tradeable. Float, Sygnum Bank, Fasanara Capital and CMS closely collaborated to make the issuance of the FLOAT1 token happen. The CMS team consisted of the following professionals: CMS SwitzerlandDr Matthias Kuert, Lead Partner, Capital Markets / Fintech & BlockchainTina Balzli, Partner, Fintech & BlockchainDr Ferdinand Blezinger, Senior Associate, Corporate / M&AAlina Fancelli, Associate, Capital MarketsMark Cagienard, Partner, TaxDr David Schuler, Senior Associate, TaxCMS Lux­em­bour­gAuréli­en Hollard, Partner, Investment FundsGeorgios Kortesis, Managing Associate, Capital Markets & BlockchainJosé Juan Ocaña, Senior Associate, Capital Markets & Block­chain­Stamat­ina Stylianopoulou, Associate, Capital Markets & Block­chain­Frédéric Feyten, Managing Partner and Partner, TaxAlejandro Domínguez Becerra, Senior Counsel, TaxSarah Lemaire, Managing Associate, TaxVicente Chapa, Associate, Tax

Rankings of CMS Switzerland in The Legal 500 EMEA 2023 Edition

Together for an innovative and world-leading Swiss metaverse ecosystem: 47 partners from business, science and administration found the Swiss Metaverse Association. They want to learn together, exchange ideas, create proofs of concepts, and advocate for favorable framework conditions so that Switzerland is among the world's best as a future location for metaverse. And CMS Switzerland is a part of it. The goal of this association, recently founded in Bern, is to create a broad-based metaverse ecosystem and to advocate for attractive framework conditions in Switzerland, so that new business models, companies and jobs can be created. The Swiss Metaverse Association (short: Metassociation) is chaired by Tina Balzli, Partner and Head of Fintech & Blockchain at CMS Switzerland, and Alexandra Hofer, Senior Consultant at furrerhugi."With this association, we are laying important foundations to position Switzerland as an innovative and forward-looking location that enables metaverse projects. As an association, we network the relevant players, initiate projects, and promote dialogue and education," says the newly elected co-president, Tina BalzliGreat need to talk about the metaverseThe project "Metassociation" was initiated jointly by Lorenz Furrer, Managing Partner at furrerhugi, and Daniel Diemers, Partner at SNGLR Group. Daniel Diemers also sits on the board of the Swiss Metaverse Association. The 47 founding members include organizations, banks, international companies, startups, universities, associations and individuals. In the past meetings with the founding members, it has become clear that the metaverse opens many possibilities and opportunities, but also brings with it questions and challenges - accordingly, the members' need to exchange ideas and pursue interesting questions is very great."We are very pleased that the Swiss Metaverse Association has been so well received. With the 47 founding members, the association has diverse expertise in very different areas - this adds great value. Together, we can now help shape a future digital world that benefits everyone," says co-president Alexandra Hofer. Addressing questions around the metaverse pro­act­ivelyVari­ous events are planned within the framework of the Swiss Metaverse Association, and working groups are being formed to address specific issues and topics. Current priorities include the following topics: Tax, the Industrial Metaverse, Regulation, Arts and Culture, Research and Education, Insurance and Banking, Technology and Infrastructure, Health, and Tourism and Sports. Additionally, it is planned to write a white paper and create a Swiss Metaverse Ecosystem Map. Board member Daniel Diemers, Head Expert Tribe, explains, "We want to learn together, develop ideas, find synergies, work out the challenges and opportunities of the metaverse, and thus ensure that Switzerland becomes one of the most attractive and best metaverse locations in the world."For more information, visit the website www. metassociation. ch