FAQs

  • What is a family office, and what are its main functions?
    A family office is a private entity established to manage the wealth, investments, governance, and affairs of an ultra-high-net-worth family. Its functions typically include investment management, estate and tax planning, philanthropy, family governance, and administrative support
  • How do I determine if setting up a family office is the right decision for my family?
    Establishing a family office is a significant and costly undertaking. Conducting a feasibility study that reviews your family’s wealth size, complexity, succession plans, and long-term vision is essential. Engaging expert advisors can help build a business case to assess whether a family office aligns with your goals and justifies the investment.
  • What types of family office structures are available?
    There are primarily two types: Single Family Offices (SFOs), which serve one family exclusively, and Multi Family Offices (MFOs), which serve multiple families. The choice depends on factors like asset size, desired services, cost considerations, and regulatory requirements.
  • What are the key legal and regulatory considerations when setting up a family office?
    Legal and tax structures must be carefully designed to optimize wealth preservation and compliance. This includes jurisdiction selection, licensing, governance frameworks, and adherence to local and international regulations such as anti-money laundering and tax reporting. For example, jurisdictions like Dubai’s DIFC have specific licensing and minimum asset requirements.
  • How do I choose the right location for my family office?
    Consider eight key factors: access to professional services (banking, legal, accounting), availability of skilled talent, regulatory environment, tax regime, immigration rules, cultural fit and living standards, reputation, and economic and political stability. Each factor impacts the efficiency and sustainability of your family office operations
  • What are the typical costs involved in establishing and running a family office?
    Costs vary widely but generally include licensing fees, office space, salaries for staff, technology infrastructure, legal and tax advisory fees, and operational expenses. For example, setting up a family office in DIFC may incur application and licensing fees totaling around $20,000 plus ongoing costs averaging several million dollars annually depending on scale.
  • How should I approach staffing and talent management?
    Define which roles to insource versus outsource based on your family’s needs. Key positions often include investment professionals, legal and compliance officers, and administrative staff. Attracting and retaining skilled professionals requires competitive compensation, clear governance, and alignment with family values.
  • What governance structures should be put in place?
    Effective governance typically involves establishing a family governing body or board with a mix of family members and external experts. Subcommittees (investment, risk, governance) help oversee specific areas. Formal policies such as investment mandates, succession plans, confidentiality, and reporting protocols are critical for transparency and decision-making.
  • How do I ensure operational readiness before launching?
    Before going live, rigorously test IT systems, cybersecurity measures, and business continuity plans. Stress-test workflows and ensure that all processes and technology are functioning smoothly. This reduces risks and ensures the family office can deliver services seamlessly from day one.
  • How do I measure and improve family office performance over time?
    Regular reviews of people, processes, technology, and vendor relationships are essential. Performance tracking against family goals and industry best practices helps identify gaps and areas for improvement. Continuous refinement, especially in communication, digital capabilities, and cybersecurity, ensures the family office remains competitive and sustainable.