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Switzerland to seal financial services deal with UK in 2023

The British government said it expects to conclude a ground-breaking deal with Switzerland on cooperation in financial services by next year, Reuters reports.

Published: 23 December 2022 10:25 CET

Switzerland to seal financial services deal with UK in 2023

The City of London. Britain expects financial services deal with Swiss in summer 2023 (Photo by JUSTIN TALLIS / AFP)

Britain’s finance ministry said on Thursday it expects the agreement to be resolved by late summer 2023, which would help the City of London bolster itself after Brexit.

The ministry said nearly two years ago it was moving to the next stage of talks on a “comprehensive mutual recognition agreement” in financial services such as banking, insurance and asset management.

“They discussed the UK & Switzerland’s close relationship & our plans to deepen cooperation on financial services by concluding a Mutual Recognition Agreement by late summer 2023,” the ministry said.

Initially it had been hoped that the agreement would be finalised by the end of 2022.

“With this agreement, Switzerland and the United Kingdom wish to reaffirm their commitment to the importance of open financial markets and international financial stability, and to consolidate their position as leading international financial centres in Europe,” it stated.

Both countries say they are committed to “protecting investors and insured persons, as well as maintaining market integrity and financial stability, while adhering to the highest regulatory standards”.

The Mutual Recognition Agreement (MRA) aims to align common standards and supervisory goals which would allow banks and insurance companies in Switzerland and the UK to boost business in each other’s markets.

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Why there is a push in Switzerland to make buildings higher

Many of Switzerland’s cities are suffering from a chronic housing shortage, with the demand for accommodation far exceeding the available supply.

Though a number of measures have been proposed — for instance, loosening certain regulations which slow down construction of new buildings, such as noise ordinances — the Swiss Tenants Association has said current plans lack “rapid and effective measures.”

READ ALSO: Why Swiss tenants are unhappy with plan to solve housing shortage

Reaching new heights

Another possible solution currently on the table addresses the scarcity of land for new constructions.

“This is why expansion must absolutely take place at height,” the Liberal-Radical Party (PLR) said in a press release.

This means that additional living space should be created on top of current residential buildings.

To that end, “building and zoning regulations in Swiss cities must be adapted so as to systematically integrate the raising of one or two floors into urban plans.”

“In addition, in all residential areas, the maximum authorised height of existing buildings should be increased by at least three metres. This should make it possible to add an additional floor or two for housing, where possible,” the party states.

The ‘where possible’ clause would exclude historic buildings that cannot be altered and ones where adding more floors is not feasible for technical reasons.

Building ‘upwards’ not only creates space for more dwellings, but also helps stop urban sprawl and preserves agricultural land, according to PLR’s MP Simone de Montmollin.

What might happen next?

The party has started an online petition, which it urges all Swiss citizens who favour this change to sign.

“Building and zoning standards in Swiss cities must be adapted so that the maximum permitted height for existing buildings in all residential areas is increased by three metres,” its text says. “This should make it possible to add an additional floor for housing, independently of the existing use.”

If and when the petition collects at least 100,000 signatures, the issue would be brought to a ballot box.

No details are available about the number of signatures collected to date.

Historic perspective

While the idea may sound ground-breaking, it is not.

As de Montmollin pointed out, already in the 16th century, houses were raised in Geneva to create accommodation for persecuted Protestants (Huguenots) fleeing France.

Much more recently, such ‘elevations’ have been possible in Geneva thanks to a law passed in 2008.

And in Zurich, the PLR, along with a multi-party coalition, launched a popular initiative for the raising of existing buildings.

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