09 January 2025 Unlocking the complete potential of a Family Office

At Oak, we believe that a true family office goes beyond just managing assets—it’s about providing holistic, long-term guidance, aligning with the family's values, and ensuring seamless intergenerational transitions.  

With increasing regulatory demands and the complexity of international family needs, partnering with a professional trustee like Oak offers both expertise and peace of mind. Jo Gorrod explores how Oak can be your family's most trusted advisor, bridging the gap between legacy and ambition.  

What does "Family Office" really mean? 

In the world of wealth management and fiduciary services, the term "family office" is often used, but its meaning can vary widely. For some, it refers to a single-family office (SFO) dedicated to one family's financial affairs. For others, it might mean a multi-family office (MFO) that serves multiple families, or a private office that offers a more bespoke service. But beyond the terminology, what truly defines a family office? And what makes one truly effective? 

The Family Office  

We have seen huge growth in family offices over the past decade, estimated to be over 7,000 worldwide managing assets more than $5.9 trillion (Forbes July 2024), the result of unprecedented creation of wealth, especially in the technology space and due to the growing complexities of managing family wealth.  

A family office, in its simplest form, is a private wealth management advisory firm that serves ultra-high-net-worth families. However, the services offered under this umbrella can range significantly. 

When someone describes a family office relationship in a fiduciary capacity, they are often just setting out good practice for trustees and the nature of the relationships that is built up with a family over time. A good trustee will assist in the development of a family governance document, is on hand to advise with family dynamics, and is there to assist with any local property issues that the family may find difficult to manage remotely. 

A trusted advisor  

A good trustee goes far beyond an administrative and fiduciary role and often becomes a family’s most trusted advisor due to the long-term nature of the relationship. They are often asked to help assist with the administration of assets outside the trust. 

It is about having a holistic view of the families’ assets in and outside the structure. At Oak we understand the fundamentals of trusteeship, the complexities of international families and how to ensure that they get the best advice on all matters. This means partnering with the right lawyers, accountants, tax advisors, bankers and investment managers and knowing when a virtual Chief Investment Officer (CIO) is needed to manage complex and varied asset classes. 

It is about having that overarching view of a family’s resources, its needs and its wants-someone who is there to guide a family through a transition from one generation to the next and sometimes bridging the gap when there is intergenerational disagreement.  

Navigating regulation and governance 

Single-family offices and some services provided such as directorships, provision of officers and registered office and acting as trustee are now within the remit of AML regulation. This is now the case in Jersey for example since the 2023 amendment to the Schedule 2 of the Proceeds Crime (Jersey) Law 1999. This means that it is more difficult to run an autonomous unregulated family office arrangement without the need for support from a regulatory host such as Oak.  

At Oak, governance is our area of expertise and it’s where we feel that we can really add value by working through a family governance framework to understand a family’s values, their vision of the family legacy and their key objectives. Are the family assets there to enable the next generation to follow their own path, or is it very much expected that the family dynasty comes first and personal ambitions must be put aside in favour of family ambitions? Discussing these matters with families and understanding their objectives allows us to draft a governance framework that clearly defines roles and responsibilities within the family, their vision for the future and their legacy. 

Using an established trust company  

How many people do you need to effectively cover all bases when managing the wealth of complex international families? You need broad investment expertise in private markets, venture capital, alternative assets, fixed income and non-financial assets such as luxury goods and yachts etc, international tax awareness, understanding of trust law and company law, philanthropy and impact investing, contract law, commercial and residential property expertise, as well as accounting, administration and reporting functions. A single-family office might require a staff of 100s to cover all these specialist areas.  

By using an established trust company, you are partnering with an institution that has provided many of these services directly and has established networks of partners who are experts in their fields to draw on for advice. This is advice that the trustees can then rely on. There is a danger in the single-family office model where you may have experts in a certain field who are having to cover multiple aspects that are beyond their remit. 

A professional trustee like Oak is the one at the centre that connects the dots between the bankers, investment managers, property agents, lawyers and tax accountants to ensure families are well advised in all areas. 

Within a single-family office environment there can be too much influence-perhaps the family are getting a polarised world view. Is it harder to hold someone to account when that office is simply a reflection of you? Are they able to deliver the bad news when necessary? Are their interests truly aligned with the family?  

When clients express a desire for a family office, they often find that their needs can be effectively met through existing fiduciary services. Experienced Trustees can help avoid unnecessary complexities by providing a traditional trust or company structure, supported by a dedicated and skilled team. This approach ensures that clients receive the comprehensive support they need without overcomplicating their financial management, allowing them to focus on their core objectives while still benefiting from the expertise and stability of fiduciary offerings. 

A partner for your family’s legacy  

At Oak we are uniquely positioned to meet the demands of international families by providing trustee and governance services to family offices and partnering with professionals to create a virtual family office environment. Our teams are experienced and knowledgeable, able to provide clarity in any client structure while providing comprehensive, dedicated support. 

With offices in Guernsey, Isle of Man, Jersey and Mauritius, we have the knowledge and skills to assist with your family office requirements. Contact Managing Director in Jersey Jo Gorrod or any member of our team for more information on how we can help.