Family Offices as a flexible response to individual family requirements
The development of the Family Office business as a platform for wealth management services is a response to the growing demand from high net worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs) for a more structured and tailor-made approach to serve their diverse needs and interests. There is no clear-cut definition of what constitutes a FO. According to Luxembourg law, the profession should be defined by the activities that can be performed by FOs. These consist, in general, of professional services and wealth management advice to natural persons, families or estate management entities regarding their wealth, with a clear long-term horizon and a strong focus on professionally managed wealth preservation, growth and development.
The needs of Family Offices are as varied as the origin of their clients. The majority of Family Office topics include financial aspects concerning the family’s assets and trans-generational issues but also personal issues related to aging. Coaching, philanthropic planning, mediation between family members and governance are just a few areas that are central to professional Family Office wealth management. Furthermore, a professional setup of wealth management, structuring and consolidation services as well as well-defined, efficient and discrete operating models are all key criteria Family Offices must deliver to attract the attention of HNWIs.
Key Criteria for Families when considering Family Office solutions: