5 Key Developments in Cross-Border Financial Regulation

1. Switzerland & UK progress financial services cooperation

In recent months, Switzerland and the UK have advanced cooperation on cross-border financial services under the Berne Financial Services Agreement (BFSA), aimed at streamlining provision to wholesale and sophisticated clients in both jurisdictions. Key developments include:

• Draft SI and explanatory memorandum to implement provisions in the BFSA enabling Swiss investment firms to serve certain UK clients
• FCA webpage with an expression of interest form for eligible Swiss investment firms and implementation timeline
• MoU signed by FINMA, FCA and PRA on 22 September 2025 setting out details of their cooperation under the BFSA, including notification procedures, registration requirements, supervisory engagement, and information exchange between the supervisory authorities. The MoU will take effect when the BFSA enters into force, expected in early 2026

2. Position Paper on 3rd country branch requirement under CRD 6

7 financial services industry and trade association bodies (based in US, UK, Switzerland and Japan) published a joint Position Paper on implementation of the third country firm branch requirement under CRD 6, seeking to encourage a consistent transposition across the EU. 

They highlight inconsistency and ambiguity in the current draft legislative proposals from various Member States in relation to:

• MiFID exemption
• reverse solicitation exemption
• grandfathering provisions
• implementation date

They also provide certain recommendations to ensure alignment.

3. Irish reforms to UCITS and AIFMD frameworks

The Central Bank is looking to reform the regulatory framework for funds in Ireland at the same time as implementing AIFMD 2 and has issued 2 consultations on 9 September 2025 to:

• amend the AIF Rulebook to enhance regulatory effectiveness and take account of market developments as well as implementing AIFMD 2
• replace the UCITS Regulations to align with revised EU UCITS framework and generally update the domestic framework following previous consultations and to provide various clarifications/guidance

Both consultations remain open until 5 November 2025.

4. French regulator publishes a reminder of requirements for marketing funds to retail investors

On 17 July 2025, the AMF published a reminder to distributors of their requirements for marketing funds in France. It is particularly focussed on foreign funds being offered to retail investors as it is seeing an increase in activity in this area. The AMF notes:

• the parameters of the definition of “marketing” in France
• where a list of authorised funds is available
• that ETFs, being investment funds, are subject to the same rules
• responsibility of distributors even when using third parties
• provision of a KID to retail investors even if relying on reverse enquiry 

5. Leeds reforms announced in UK

On 15 July 2025, a package of reforms to the UK financial services regulation framework was announced as well as various financial services proposals and policies. In particular, the proposals include:

• government’s approach to designating overseas jurisdictions under the Overseas Recognition Regime
• intention to set new, shorter deadlines for determining regulatory applications
• FCA’s intention to review who can be treated as a professional investor
• digitalisation of the UK wholesale financial markets across three broad areas
• information on the Berne Financial Services Agreement