Skip to main content

10 Reasons for Setting up a Family Office

10 Reasons for Setting up a Family Office

There is an ever increasing number of Family Offices being set up by wealthy families. Below we take a quick look at some of the main reasons these offices are being set up:

Confidentiality & discretion

High Net Worth Individuals (HNWIs) are highly sensitive to maintaining confidentiality for a variety of legitimate reasons, and setting up their own Single Family Office (SFO) or hand-picked Multi-Family Office (MFO) gives them the confidence and peace of mind that their information and data is being kept confidential. 

Trust

Often HNWI’s will employ professional advisors who they have worked with for some time and who they have grown to trust with their affairs. By engaging those advisors directly in their own Family Office they can maintain that trusted relationship.

Independence

By employing their own staff or engaging with an independently owned MFO, HNWI’s can ensure that their Family Office’s interests are closely aligned to their own with no conflicts of interest. 

Time saving

Most wealthy families quickly realise that with great wealth comes the burden of managing that wealth. In this sense, time is truly precious and a Family Office may be used to manage personal homes, luxury assets, take care of travel arrangements and deal with what can sometimes be sensitive tasks.

Cost saving

Not only can the Family Office therefore provide a more holistic solution, it can also be more cost effective than utilising a range of external advisors. 

Accountability

HNWIs want the staff reporting to them to be directly accountable for their actions. Consistency of personnel and a 'long life' employer-employee relationship means that Family Office staff understand the long-term effect of their role and actions.  

Dedicated staff

Staff in an SFO are entirely dedicated to one client family and can therefore easily prioritise their work loads. Increasingly we are seeing MFO’s employing some staff dedicated to a single client.

Flexibility

As the staff are reporting directly to the HNWI in an SFO or based on a bespoke service agreement in an MFO, their roles and responsibilities can be as flexible and varied as the HNWI requires. 

Control

The HNWIs directly instruct staff within the Family Office. This means that the Family Office recruits and mentors staff who are highly skilled and very focussed on their client family’s needs. 

Tailored advice based on full and historical knowledge

The staff of the Family Office can know the whole picture – the tax and legal structure, the likes and dislikes of the HNWI and their family, together with a very deep and personal historic knowledge of the family’s affairs. This in-depth knowledge means that the service offered can be extremely profound and personalised.

You may also like

26 January 2018

Ocorian wins 'Family Office of the Year' at the Citywealth IFC Awards 2018

Ocorian is delighted to announce that it has won 'Family Office of the Year' at the Citywealth IFC...

Read more

13 March 2018

What is a Family Office?

There has been quite a buzz over recent years about the growth of family offices in Europe.  This ...

Read more

27 March 2018

The Life-Cycle of a Family Office

Having managed both Single Family and Multi Family offices for twenty years, and having worked wit...

Read more

19 July 2018

Part One - Why are Family Offices on the rise?

"Wealth professionals' traditional ways of operating are being challenged by client demands for i...

Read more

16 August 2018

Part Two - How to avoid family disputes when transferring wealth

"Family Offices are now increasingly recommending a greater degree of communication and transpare...

Read more

10 September 2018

Part Three - Cultural sensitivity in Family Offices

In the final part of this three-part series examining the evolution of Family Offices, Ocorian's R...

Read more

18 October 2018

Conflict within wealthy families - why does it happen?

After chairing a panel at the recent Prestel and Partners' Family Office Forum in London, Ocorian'...

Read more

28 December 2018

Where to locate a family office - 5 key factors to consider

In the past, wealthy families have tended to set up their family offices in their home jurisdictio...

Read more

22 February 2018

Family Investment Companies

Family investment companies are fast becoming a popular alternative to trusts in wealth and succes...

Read more

07 November 2017

It’s more challenging to grow family wealth in Asia

New regulations mean wealth creation is becoming less of a priority for Asian families. Instead, t...

Read more