Family Business Advisory

Family and Business Advisory

As family wealth extends well beyond purely financial assets, addressing the challenges of multi-generational families, businesses, taxation, philanthropy and related issues require specialist advice. Major Domus offers a specialist family advisory service to clients wishing to benefit from our experience in working with a wide group of professional intermediaries and wealthy families.

We offer practical advice on family issues which takes into account each family’s unique situation and understands the underlying themes common to Asian-Pacific families. Major Domus is able to leverage its extensive network to provide advice and introductions to forward the future growth of the business where such aspirations exist.

White Paper: An Examination of the Family Office Model in Major Financial Jurisdictions

This paper discusses family offices from several legal viewpoints and explores laws relating to charity being a normal addendum to the operations of family offices (Offices). It was the intention of this paper to focus on Singapore, Hong Kong and Australia, however, where more extensive (and pervasive or updated) literature was found (e.g. taxation and charity law), this was highlighted using major jurisdictions such as the United Kingdom and the United States.

Of course Privacy law could not be examined, in the context of private wealth management, without touching on Switzerland.

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Family Business

Family business planning can either pose major risks to the family structure or serve as a tool to enhance family relationships. Well-considered advice can help make the difference by appropriately considering a family business governance system, rules of engagement for family members, family member advancement and compensation, leadership succession mechanisms to ensure continued family ownership, allowing liquidity and flexibility around individual participation

Family Governance

Helping families develop and implement a customized framework designed to improve profitable decision-making whilst reducing the risk of family conflict stand as key in our value proposition. This may include a number of activities but not limited to guidance in establishing a family mission statement or a family constitution, developing a family charter and family council, planning to enhance and establish the next generation, Philanthropy strategy.

The Family Office

Support in defining and designing the purpose and function of your family office or enhancing current arrangements. Advising on operating structure, governance, investment board and proactive risk management frameworks.

What is a Family Office

Family offices are generally categorized as either a single-family office, multi-family office, or a virtual family office.

Single-Family Office (SFO)

A single-family office (SFO) is created to serve a specific family group, with a general threshold, (generally speaking) of USD$100 million or more investable assets.

Multi-Family Office (MFO)

A multi-family office (MFO) is an organization that provides family office services to more than one family group. It provides similar services to that of a single-family office, but one advantage of which is that there is no need to set up a separate family office infrastructure, making the entry level to such an office substantially lower, around the $25m to $50 million range. The benefit of reducing costs comes with other advantages such as increasing investment resources, streamlining due diligence on co-investment deals, and aggregating use of other infrastructure such as tax, legal, audit and family services.

Exclusivity and confidentiality increases when compared to being a member of a ‘private bank family office’ given the small number of families underpinning the Office. In turn, an MFO can bring to surface independence issues and reduce potential conflict of interest between different stakeholders working together as private family enterprises.

Virtual Family Offices (VFO)

Virtual family offices (VFO) have started to be offered at the USD$10m level and above. What is meant by ‘virtual’ is essentially a website-based network set up exclusively for the management, governance, and communication needs of family wealth. The family’s trust advisor serves as the relationship manager who will assemble teams of individual professionals to serve and meet specifically the needs of the family.

The Evolution of the Family Office

 Innovation underpins the evolution of the family office model. Virtual offices are now able to mirror some of the services traditionally held for Single family officeswhile multi-family offices can accommodate the tailored goals of separate families using investment bank and technology providers to maximise cost reductions and administration.

Today’s lower cost entry level illustrates the fact that technology and provision of services are the mainstay of a family office offering, rather than a certain amount of financial assets. In addition, by sourcing the different services such as lawyers, CPAs, Banks, etc., the MFO (and VFO) can function much like an SFO but with added efficiency, since every profession that is involved is a specialist within his respective field, whether working inside or outside an actual physical stand-alone (FO) office.

A Word From Our Team

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