Switzerland Announces Major Policy Shift in Stock Exchange Relations with EU

In a significant move, Switzerland's Federal Council declared on Wednesday that the European Union will no longer be on the stock exchange protection list starting May 1, 2025. This decision marks a pivotal change in the financial landscape between Switzerland and the EU.

The protective measure was initially implemented in 2019 to safeguard the Swiss stock exchange infrastructure against the EU's non-recognition of the equivalence of Switzerland's stock exchange regulations. However, with the EU adjusting its legal framework in the spring of 2024, the necessity for such protection has diminished. This development is anticipated to have a positive impact on Swiss businesses, fostering a more integrated financial market.

The Federal Council emphasized Switzerland's ongoing commitment to seeking equivalence recognition and enhancing market access for financial service providers through regulatory dialogues with the EU. This approach underscores Switzerland's dedication to maintaining a robust and cooperative financial relationship with the European Union.