Switzerland and Israel have agreed on a closer cooperation in the financial-services industry. The two governments are particularly eager to give the fledgling fintech industries in both countries a boost.
Ueli Maurer, the Swiss finance minister, and his counterpart in Israel, Moshe Kahlon, today signed a memorandum of understanding in Tel Aviv, the Swiss Finance Ministry said in a statement. The agreement is designed to pave the way for a closer cooperation in financial services.
The ministers expressed their intention to strengthen the industries in their business across borders. UBS, Julius Baer and Pictet are among the biggest Swiss financial-services companies with strong business ties in the country on the Mediterranean shores.
Fintech Cooperation
The two governments also welcomed the signing of a cooperation agreement covering the fintech industry by the Swiss financial market supervisor Finma, Israel’s Capital Market, Insurance and Savings Authority (CMISA) and ISA, the Israel Securities Authority.
The regulators henceforth will exchange information about the latest trends in fintech and the likely effects on regulatory conditions.
Startup Breeding
The two highly advanced economies have several fintech hubs and are breeding grounds for technology startups. In Switzerland, entrepreneurs profit from the financial market as well as strong academic institutions, while Israel is known for its wealth of high-tech firms.
The agreement may also lay to rest past disagreements that focused on tax evasion. Israel’s tax authorities suspected that Swiss banks offered their services to its citizens in a bid to avoid paying taxes.
