UK regulatory guidelines for the Berne Financial Services Agreement – What does this mean for UK and Swiss insurers and intermediaries?

This article explains how the Berne Financial Services Agreement ("BFSA") and the FCA/PRA Berne Financial Services Guidelines ("BFSG") (published on 3 November 2025) affect UK and Swiss insurance firms. It sets out what the BFSA and BFSG are, who and what is in scope, application/reporting requirements, timing and practical next steps.

The BFSA and BFSG also cover other financial and investment services; in addition to insurance. Those services are outside of the scope of this article. 

How does this new regime differ from existing access routes for Swiss and UK insurance firms into each other's jurisdictions?

• UK insurers into Switzerland (before BFSA): Access largely required Swiss authorisation/notification under the Insurance Supervision Act ("ISA") or reliance on narrow exemptions (e.g., maritime/air/international transport risks, risks located outside Switzerland, and war risks; reinsurance also exempt).Swiss brokers were required to localise from 1 January 2024.
• Swiss insurers into the UK (before BFSA): Access operated under UK domestic regulation (FSMA/UK regulatory regime). Certain wholesale classes could be supplied cross‑border subject to UK regulatory exclusions (e.g., compulsory motor/general liability that must be insured by an authorised UK insurer). Swiss ISA notifications/authorisations were applicable for cross‑border supply from Switzerland.

What is the BFSA?

The BFSA is an outcomes-based mutual recognition agreement between the United Kingdom and Switzerland. Its goal is to:

1. facilitate cross-border financial services trade;
2. create new market access to allow UK insurance companies and intermediaries ("UK insurance firms") to offer certain wholesale insurance services in Switzerland without needing Swiss authorisation; and
3. allow Swiss insurance companies and intermediaries ("Swiss insurance firms") to offer similar services in the UK without requiring UK authorisation.

What is the BFSG?

The BFSG was published by the UK regulators (the Financial Conduct Authority ("FCA") and Prudential Regulation Authority ("PRA") on 3 November 2025. It sets out the practical steps to comply with the BFSA, including the eligibility, notification, disclosure and reporting procedures for UK insurance firms using BFSA access routes to target Swiss clients and Swiss insurance firms using BFSA access to target UK clients. It explains firm‑level obligations, supervisory coordination and other operational details.

How does it impact UK insurance firms and what is the eligibility criteria?

For certain wholesale insurance business, under the BFSA, Switzerland defers to UK authorisation and prudential measures — allowing eligible UK insurance firms to supply specified insurance services cross‑border into Switzerland while relying largely on UK regulation and supervision, subject to BFSA conditions.

The key eligibility criteria for UK insurance firms are:

• being an insurer or insurance intermediary authorised and supervised in the UK;
• incorporation or formation under UK law (or UK branch of an in-scope Swiss insurer for intermediaries);
• supplying the relevant classes of insurance business in respect of risks located outside Switzerland; and
• meeting specified Solvency II conditions at the entity level, including:

• no use of capital relief measures (matching adjustment, volatility adjustment, dynamic volatility adjustment, transitional measures on risk‑free interest rate, transitional measures on technical provisions);
• maintenance of a company‑specific management buffer;
• no life insurance liabilities other than those stemming from non‑life insurance contracts (with any such liabilities capped at 10% of total best estimate liabilities without capital relief); and
• ensuring staff distributing insurance contracts possess relevant knowledge of Swiss insurance legislation.

UK insurance firms must notify the Swiss Financial Market Supervisory Authority ("FINMA") (copying the PRA/FCA) and be placed on FINMA’s BFSA register before providing the cross-border services into Switzerland.

How does it impact Swiss insurance firms and what is the eligibility criteria?

From Switzerland into the United Kingdom, the BFSA permits Swiss insurers and intermediaries to supply specified services without the requirement to be authorised in the UK.

To meet the eligibility criteria, Swiss insurers and intermediaries must be authorised and supervised under the Swiss ISA as an insurance company conducting direct insurance or reinsurance or as an insurance intermediary.

Which insurance activities are in scope of the BFSA and BFSG?

UK insurers providing covered services cross–border into Switzerland

The activities falling into scope are defined as "covered services" under the BFSA, these include general insurance cover in the following classes:

• damage to or loss of land or railway vehicles and lake/river/canal vessels; goods in non‑cross‑border transit;
• theft and wilful damage property risks excluding specified perils; damage to nuclear facilities; credit;
• suretyship;
• miscellaneous financial losses (including employment risks, insufficiency of income, loss of profits, indirect trading losses and other non‑trading financial losses); legal protection;
• business travel assistance for employees of covered clients;
• limited third‑party liability exclusively for directors and officers, sellers’/buyers’ warranty and indemnity in transactions, and defined cyber risks for qualifying enterprises; and
• cyber and renewable‑energy related business interruption, property damage to installations/equipment, and associated miscellaneous financial loss are included where consistent with the specified classes; exclusions apply where Swiss public‑law regimes or legally enforceable pools require local arrangements.

UK insurance intermediaries providing covered services into Switzerland

The covered services are insurance distribution for:

• the insurance coverage listed above when provided by a UK insurer providing covered services; and
• insurance written under Switzerland’s ISA by an insurer authorised and supervised by FINMA.

Swiss insurers providing covered services cross‑border into United Kingdom

The covered services include effecting and carrying out contracts of insurance as principal in wholesale classes including:

• maritime shipping;
• commercial aviation;
• space launching and freight (including satellites);
• goods in international transit; credit and suretyship;
• land vehicles; fire and natural forces;
• other damage to property;
• motor vehicle liability and general liability (subject to UK domestic exclusions where authorisation is mandated); miscellaneous financial loss; and “difference in conditions/difference in limits” under master policies across multiple jurisdictions; and
• auxiliary insurance services (consultancy, actuarial, risk assessment, claims settlement), reinsurance for all classes, and distribution activities by intermediaries are also covered.

UK insurance intermediaries providing covered services into Switzerland

The covered services include distribution activities for all classes of insurance risks related to the services supplied by Swiss insurers under Section III.A of the BFSA, in accordance with UK regulation.

Which clients are eligible to receive covered services from UK insurance firms or Swiss insurance firms?

Eligible clients are described under the BFSA as "covered clients". For insurance activities, these are limited to large enterprises meeting at least two of three size thresholds:

• UK clients (for Swiss‑into‑UK supply): turnover above GBP 36 million; balance sheet total above GBP 18 million; more than 250 employees.
• Swiss clients (for UK‑into‑Swiss supply): net turnover above CHF 40 million; balance sheet total above CHF 20 million; more than 250 employees.

The BFSA also allows policies covering “Covered Subsidiaries” of covered clients—both in Switzerland and in the UK—where subsidiaries are explicitly named as insureds, subject to certain rules on where the risk is situated.

Which insurance clients and activities are out of scope of the BFSA and BFSG?

• Retail and SME insurance and life insurance are out of scope. The BFSA’s scope is limited to wholesale general insurance and related distribution services for large enterprises (as defined above).
• Business undertaken through a Swiss branch of a UK insurer is outside the BFSA, which governs cross‑border services only and does not affect the 2019 UK–Switzerland agreement on direct insurance other than life insurance for branch business.
• On the Swiss side, coverage is excluded where insurance is subject to public law regimes (e.g., cantonal building insurance monopolies) or requires legally enforceable pool participation. In addition, some UK‑side liabilities that must be insured by an authorised UK insurer under domestic law are excluded from Swiss‑into‑UK covered services.

What processes and procedures do UK insurance firms need to comply with to provide covered services to clients in Switzerland?

UK insurers must complete the BFSA notification, obtain placement on FINMA’s public BFSA register, comply with disclosure and reporting conditions and maintain eligibility throughout:

• Notification and registration: submit via FCA Connect the relevant information required (UK insurance firm details, FRN, contact information, classes of insurance to be supplied, self‑declarations of eligibility and compliance). The PRA and FCA will jointly confirm eligibility and good standing to FINMA within 30 days; FINMA will place the UK insurance firm on its register within 30 days thereafter. UK insurance firm must notify FINMA (copying the PRA) of any changes relevant to their register entry, including additions to classes of insurance.
• Eligibility confirmations: confirm the UK insurance firm provided the relevant covered services in respect of risks located outside Switzerland and meets Solvency II and staff knowledge requirements. The PRA should be notified where permissions exceed actual business conducted outside Switzerland m and may liaise with FINMA to align the BFSA registration to the firm’s actual scope.
• Pre‑contractual disclosures and client information: UK insurance firms must provide covered clients in Switzerland with disclosures required under the BFSA (e.g., firm identity, supervisory status, applicable law/jurisdiction, premium tax responsibilities, complaint contacts; intermediaries must provide specified disclosures). UK insurance firms must also, upon request and subject to data protection laws, supply the covered client’s full file within 30 days .
• Annual reporting: UK insurers must report annually to FINMA with a copy to the PRA/FCA, including firm details, classes of insurance supplied, and gross premium volumes by class when exceeding the CHF 5,000,000 threshold in the prior 12 months. Reports are due by 30 April via FINMA’s EHP platform, with automated copies to UK supervisors.
• Ongoing supervisory cooperation and host interventions: FINMA retains host intervention powers to address material harm or non‑compliance, including restrictions, client disclosures, wind‑down arrangements, register changes, and public notices, with procedural safeguards and dialogue with UK supervisors.

Intermediaries acting in a fiduciary capacity for covered clients (not as employees of insurers) remain subject to Swiss domestic law, except that the ISA localisation requirement is disapplied for the BFSA insurance activities.

When do these requirements take effect?

The BFSG notes separate FCA and PRA consultations (launched in September and October 2025) to disapply or adjust UK rules to the extent they would otherwise conflict with the BFSA’s model and processes, with final rule changes to be published by year end.

The BFSA will take effect on Thursday 1 January 2026.

What are practical next steps for UK insurance firms seeking to provide services under the BFSA and BFSG?

UK insurance firms should assess whether their insurance business and client base fall within the eligibility criteria for covered services and covered clients to access the Swiss market through the BFSA. To do this, they will need to:

• verify that they already supply the covered services for risks outside Switzerland;
• confirm that they meet the Solvency II and staff knowledge conditions;
• prepare the BFSA notification via FCA Connect to obtain placement on FINMA’s register; implement BFSA‑compliant disclosures and file access processes for covered clients;
• establish systems to capture and report the annual data required by Annex 4 Section VII.3; and
• assess the disapplied localisation rules and applicable Swiss domestic obligations under the BFSA where UK insurance firms contemplating intermediary activity in a fiduciary capacity