European family offices most worried about governance and technology

• Study shows family offices believe governance and upgrading technology are their biggest challenges and agree more needs to be done on succession planning
• 84% have opened more offices as family members increasingly live overseas, and 92% say family members have multiple citizenships

Family offices in Europe believe improving governance and upgrading technology are their biggest challenges and agree more needs to be done to address succession planning, new research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.

It found enhancing governance of the family office so that the needs and expectations of family members are met is seen as the key challenge by 83% of those surveyed, while nearly half (46%) pointed to the need to upgrade technology. Around 39% highlighted the challenge of maintaining confidentiality and privacy.
Ocorian’s study among 100 family office professionals working in the UK, Channel Islands, France, Germany, Spain, Italy, Switzerland and Ireland collectively responsible for around $50.4 billion assets under management found almost all (98%) agree more needs to be done about succession planning at the family office with 17% strongly agreeing. Around half (49%) said their family office had developed a strong succession plan over the past five years as part of an increase in professionalisation.

The research found 84% said younger generations were becoming more involved in developing and reviewing the investment strategy of the family offices and 83% said the family office they work for is likely to increase its investment risk appetite over the next 12 months.

Around 84% reported that their family office has opened more offices in different jurisdictions over the past five years with nearly three-quarters (73%) saying the main reason is that family members are increasingly moving abroad. However 52% said opening more offices was due to their investment portfolio becoming more diversified and to reduce the geopolitical risk to the family.

Almost all (92%) questioned report a rise in family members having multiple citizenships over the past five years and 85% expect the trend to continue for the next five years.

Michael Harman, Commercial Director – Private Client, at Ocorian commented: “Governance and ensuring all family members have a say in the running of the family office is clearly the biggest priority for European family offices and one that they are already addressing through work on succession planning.

“Good governance helps to ensure family harmony which in turn helps the family office to run smoothly and achieve its objectives. The family offices we work with are very much global and we see the number of offices expanding in line with this; our next-gen clients, often in their 30s and 40s, are truly international and have schooled, studied, lived and worked in a multiple of countries so their governance, structuring and planning requirements naturally reflect this – our expertise and scale positions us perfectly to assist.”

Ocorian’s award-winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.

Key services include formation and administration of family offices, HR support services, support with lifestyle and luxury assets, family governance, resident and relocation services and specialist support with immigration, visas, payroll, marine and aircraft crew management and financial reporting.

* In July 2024 Ocorian commissioned independent research company PureProfile to interview family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. It contacted 100 working in the UK, Channel Islands, France, Germany, Ireland, Italy, Spain, and Switzerland collectively responsible for $50.4 billion assets under management. Of those, 57 worked for multi-family offices. The research was part of a global study which interviewed 309 family office executives.