Private Office

Are you ready for the great wealth transfer?

Over the next 20 years, the world will see the greatest ever transfer of wealth, with $84 trillion¹ expected to pass down to younger generations in the US alone. Yet, according to a recent report by investment firm UBS, 40% of wealth owners interviewed do not have a formal inheritance plan in place and more than half have not fully shared with their family how much they are worth, and where their assets are located².

These statistics neatly summarise both the opportunities and challenges facing wealthy individuals and their family in ensuring a smooth transition. While the wealth current owners have built and can provide security and comfort for future generations, if the transition is not handled properly, it risks creating tensions and ultimately pushing families apart.

Each family is unique and passing down wealth to the younger generations requires a careful balancing act between the wishes and the legacy of the wealth creator, the aspirations of the younger generation and the willingness of each family member to play its part. Planning, education and coaching is essential and with it the willingness to be open to discussions and an understanding of each stakeholder’s aspirations.

While succession planning is often a complex process, it is generally the easier part of the picture when compared to navigating family dynamics and the differing perspectives of the younger generations who are set to inherit.

Squaring these apparent conflicts may be easier with the help of a skilled, experienced, independent facilitator to support discussions and engage with different members of the family. After all, there will be much common ground around the shared objective of ensuring the long-term preservation of wealth of the next generations. But starting conversations and finalising plans can prove difficult. An independent facilitator with experience, tact and sensitivity can act as a vital bridge between different generations.

While much of the responsibility for succession planning rests with the head of the family, it is important to make sure that those who will be inheriting the wealth have the skills, tools and understanding to take on the responsibility that comes with it. To help with this, formal and practical wealth management education should be considered. Examples as the form this could take: a specific programme in a financial institution devoted to the young generation, time spent in the family business, attendance as an observer at relevant company board meetings etc. There is no one size fits all solution. The training and coaching must be bespoke tailored to the concerned individuals and goals of the family and participatory. What matters is that the younger generation understands early on the mechanics of, and the potential impact wealth will have on their lives. Equally important, is the understanding they can anticipate their wealth preservation and creation to suit their own ideals without sacrificing the commercial element. In a recent partnership with the University of Zurich, Accuro was able to help provide younger generation with training in sustainable investing. This not only ensured the desired social impact these young individuals wanted to achieve but ensured that all members were engaged and committed to the same goal of preserving wealth and maintaining family legacy.

It has become increasingly popular to bring the family’s objectives together in a Family Charter, which lays out the family’s long-term objectives, succession plans and values. This can ensure that there is a single guiding framework around which all decisions are made. Accuro can play a valuable role in consulting with family members to help them agree on a route ahead that everyone is engaged with and agreed on.

Having set the route, mapping out the journey and then following it step-by-step is the next stage. Key to navigating this path successfully is consolidating all the relevant information so that the details and documentation on assets are held centrally. Having a single central point of reference can help to ensure assets are constantly monitored and that channels of communication are open. At the same time, security and access can be strictly controlled. Clearly, the ability to act on the family’s instructions with impartiality is essential.

The real danger of the great wealth transfer is that current wealth owners may not have the right processes in place to facilitate a smooth transfer, and younger generations may not be properly prepared to take on the mantle. Both these barriers risk diluting wealth, reduce harmony and erode legacy. Getting it right means ensuring the preservation of your family wealth for generations to come. An outcome that requires planning today.

For more information about our bespoke private office services, please contact Stephen Weaver.

Why reputation is your greatest but most vulnerable asset

Digital media and the demand for greater transparency are putting the reputation of wealthy families and individuals under increasing scrutiny. Accuro’s Katrina Williams and Paul Douglas examine how to stay one step ahead.

Reputation rarely appears on a spreadsheet, but it is nonetheless an important asset. In business, it builds trust and opens the doors to new opportunities. On a personal level, it is key to social interaction and can be the glue that binds families together around a common set of values.

It is also an asset that is increasingly under threat. In today’s age of instant news and unfiltered online information, the dangers to reputation have never been higher, more multi-faceted or so rapidly moving. At the same time, regulations requiring greater transparency are providing journalists and members of the public with greater access to information about individuals and their business interests.

The dangers are particularly relevant for wealthy individuals and families. Firstly, they have more to lose from reputational damage because of the value of their financial interests. Secondly, it is now more difficult for the wealthy to separate their personal and business worlds. In the past a family name was often disconnected from the ownership of the family assets but, with the inexorable drive towards greater transparency, it is becoming increasing difficult to maintain that financial privacy.

Regulation increases transparency

In the first few months of 2024 alone, two UK regulatory developments have accelerated this trend. The expansion of the Register of Overseas Entities (ROE) requires non-UK companies that hold land in the UK to register with Companies House and provide details of beneficial ownership. In addition, a new consultation process is paving the way for changes to the Trust Registration Service, which could potentially widen the scope of transparency of non-UK trusts holding land and public disclosure disclosure by default.

This greater access to personal and professional information, allied with an online world where anyone can create content, brings with it increased vulnerability to a range of threats including cyber-attacks, blackmail, physical security risks, press intrusion and smear campaigns.

While traditional media typically provides the person named in a news story with a right to reply and a clear route to take legal action against false claims, this is not the case in so-called new media. In an online world where anyone can create content and ‘troll’ with anonymity, such routes are far less clear, or likely to achieve recourse. Even if the perpetrator is found, having the inaccurate information removed can present further challenges.

Taking action to protect your reputation

For those who have so far managed reputation largely by maintaining anonymity, it is important to accept that an online profile is now inevitable, but what really matters is who controls it. So, the first step is to own and carefully manage your online presence, typically with the help of specialist support.

The sheer pace at which news stories break doesn’t provide much time to prepare, so the next step is to put in place plans for a range of reputation-related scenarios. This will require pre-set relationships with key professionals including lawyers, security advisors and digital experts to have expert and objective input instantly available.

It is also worth considering the upside of reputation management. Are there ways to not only protect reputation but actively enhance it? Many families have charitable or philanthropic projects, but they are not always shared publicly. This could present an opportunity to show how a family gives back to society, thereby also generating a protective shield against potential adverse publicity.

How Accuro can help

Firstly, through our networks we help clients access trusted public relations, cyber and legal experts who can advise and act on reputation management. Secondly, we prioritise confidentiality, keeping your personal information safe through our strict data security and cyber protection standards. Finally, we believe that our holistic approach to clients generates reputational benefits. Family dynamics and inter-generational friction can sometimes fuel adverse publicity and often lead to significant cost. A crucial first step in avoiding such situations is often surprisingly simple: starting conversations, between partners or across generations, so that all parties can feel that they have a voice, and any issues can be tabled, addressed and the desired outcomes documented in letters of wishes, family charters or constitutions.

It is worth bearing in mind that older family members are well practiced at staying below the radar, and the younger family members are more likely to be prolific users of social media and thereby in danger of unwittingly exposing their family to unwanted attention. Here again, having an independent, familiar, and trusted advisor can help bridge generational divides and put clear guidelines in place. Such an approach may prevent the need for expensive lawsuits or PR strategies and help you to protect one of your most important assets – reputation.

We work in tandem with leading reputation lawyers, cyber security experts and risk specialists to help bring all rounded solutions to clients that can be monitored and managed on a proactive rather than reactive basis.

New year, new resolution? How our private office services will be helping clients to get ahead in 2024

As 2024 begins, continuing conflict in Europe and the Middle East, trade tensions, slowing economic growth and the prospect of a downward correction in interest rates are all key concerns for investors. For those managing family wealth, greater regulation and adjusting to the differing investment needs of younger generations add further pressure. As a result, wealthy individuals and families increasingly require holistic and real-time reporting, diligent oversight and accurate, constantly updated records.

These demands are not only making the work of existing private offices more complex, but they are also making some clients consider, for the first time, setting up a private office or joining a multi-family office. However, doing so can require a significant investment of time and money, when a simpler and more effective option is available.

Accuro offers discrete, bespoke professional services specifically for private clients. These are designed to help those who wish to either outsource their private office requirements or build on the capabilities of their own single-family office. In either of these two cases our aim is to act as a seamless extension to our clients’ own team. Rather than replacing any existing advisors or arrangements, our private office services support, strengthen and deepen existing capabilities.

In short, clients receive all the specialist and personal attention they need, but without the cost and complexity of setting up or expanding their own private office.

Services that support and strengthen

Examples of Accuro’s services range from helping with setting up bank accounts, with all the KYC coordination that it requires, to the computation of personal expenses and assistance with the implementation of property transactions. Typical services include:

Consolidated reports for different asset classes;
Private accounting, liquidity and budget planning;
Expense reporting, receiving and paying invoices;
Opening and closing of bank accounts and maintain relationships with banks;
Coordinating the salary payments of private staff;
Safekeeping of legal documentation;
Compliance coordination with financial institutions; and
Assistance with the implementation of personal transactions (such as purchase of property or other assets)

We also provide clients with access to specialist legal, financial, or other advice. For example, for a client having to navigate complex cross-jurisdictional tax issues, or a family wishing to purchase foreign real estate, even the best resourced private office may not have the niche expertise required. Here, Accuro’s network of trusted advisors can be called on.

Independent, specialist and sustainable

While providing individual, high-quality services to our clients is vital, it’s clear that joined-up, long-term thinking is also paramount to the success of any family and therefore the cornerstone of the private office. The so-called 3Ps are paramount here: preservation of family wealth, preservation of family harmony, and preservation of family legacy and values. Key to these is creating a dialogue that engages all within the family. For example, while older generations may be satisfied with a quarterly report on financial performance, younger generations may find that it is the social or environmental impact of investments that will engage them and make them more likely to play an active part.

As entrepreneurs and business owners ourselves, we promote responsible enterprise and growth that benefits current and future generations. It is our holistic view of our clients’ wealth and evolving needs, combined with our sense of responsibility to people, the planet and our industry, that makes Accuro an attractive choice for families globally.

An added advantage is that, because we are not asset managers, our clients can avoid any potential conflict of interests that may arise from having investment professionals also overseeing the administration of their wealth. Our independence, objectivity and private wealth expertise enables us to fulfil this key role.

New year, new resolution

With the latest research by investment firm UBS expecting global wealth to rise by 38% over the next five years and geopolitical risk predicted to replace recessionary fears as the number one challenge for family offices, the pressures mentioned earlier show no signs of abating. So, make 2024 the year to strengthen your private office capabilities by relying on a trusted partner who can help you make the most of the opportunities that lie ahead.

For more information about our bespoke private office services, please contact [email protected].

Industry Challenges

A potential collision course

Renaissance thinking amongst vanguard families who plan for both their legacy and their wealth is inspirational for the professionals who engage with them. But this new approach also comes with challenges.

In this two minute video, the third and final in a trilogy, Mustafa Hussain considers a number of challenges including how we balance the potential collision course between the need to preserve capital and the sacrifice of income in favour of social returns.

Legacy Evolution

The new living legacy blueprint

It is unusual but refreshing to see governance documents that use words such as “love, respect, humility and fun” as measures of progress and success.

In this two minute video, the second in a trilogy, Mustafa Hussain explains how the traditional view of family legacy is evolving, with vanguard families providing a blueprint for new living legacies that demonstrate a shift away from status, towards growth, change and values with emotions.

Private office: preserving your family’s legacy and embracing sustainability for generations to come

Families are remarkably diverse in terms of history, vision, culture, size, interests, mission and values. The landscape for wealth-owning families is also rapidly evolving and becoming more complex and volatile. Mega-trends like climate change, globalisation, and increased wealth inequality have brought adverse economic, social and geopolitical consequences. This challenging context is front of mind of many wealthy family members who are looking to sustain and grow family wealth in a responsible manner across generations.

Different by Design

Accuro’s purpose is to care for families and their wealth responsibly across generations. Our Private Office offering has been designed to assist families in achieving their financial and non-financial objectives based on their collective vision for the future. Whether you wish to outsource your Private Office requirements (saving time and costs) or to build on the existing capabilities of your family office, our team of 150 specialists is available to help you do so. Acting as a seamless extension of your family and advisory team, Accuro Private Office works collaboratively with your vision in mind.

A trusted extension of your team

Our knowledge and expertise enables us to assist families in navigating through the complex issues of today, including geopolitical risks, legal, tax and regulatory risks, technology-driven change, financial and succession planning.

By engaging our Private Office, individuals and their families can outsource the administration of their personal assets in the knowledge they are being cared for, in line with their family’s values, freeing up their time and providing peace of mind.

Built on the unique needs of each family

We administer a wide range of assets and offer simple or more bespoke solutions depending on your unique requirements, providing you with a single dedicated point of contact who will ensure and oversee seamless delivery.

We are well versed in collaborating with clients’ existing advisors to provide coordination where needed to ensure roles do not overlap unnecessarily.

Our services include:

Asset and wealth owning structures’ review
Wealth structures for long-term wealth preservation and needs of global families
Wealth administration, reporting and consolidation across financial and non-financial assets
Family governance
Compliance
Next generation education
Cross-border planning, reporting and information exchange
Estate planning
Document safe storage
Charitable giving and structuring

Why Accuro?

Experience built on nearly 50 years’ experience of servicing high net worth international families.
Being owner and staff managed allows independent thinking and objectivity which enables us to take a long-term approach to wealth planning strategy and support clients according to their needs on a bespoke basis.
Access to Accuro’s carefully selected network of wealth advisors based on established and trusted relationships.
We address fundamental questions and achieve clarity for family priorities, defining and executing a clear strategy to preserve wealth across generations. We ensure personal vision and financial objectives are met.
We understand the sensitivities and cultural differences of each family. We are thoughtful in our approach and transparent, when quite often there may be diverse interests which can lead to overwhelming complexity and differences.
We are trusted by our clients to be progressive in our thinking and have extensive experience of working alongside families to balance their desire to preserve wealth alongside the sustainable ambitions of the younger generation.

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