Single-Family Offices Report Challenges in Regulation, Investments and Security

WHEATON, Ill.--(BUSINESS WIRE)--Regulatory rules, investment performance and security issues top the list of challenges for single-family offices, according The Family Wealth Alliance’s 5^th Annual SFO Study. Findings were revealed today at the Alliance Fall Forum, being held October 16-18 at The James Hotel Chicago. The sold-out gathering provides a unique environment, for executives of family offices and firms that serve ultra-high-net-worth families, to meet with peers and exchange ideas.

“New regulatory rules requiring many family offices to register with the Securities and Exchange Commission as investment advisers impacted 32.4%”

“New regulatory rules requiring many family offices to register with the Securities and Exchange Commission as investment advisers impacted 32.4%,” said Bob Casey, head of research for The Family Wealth Alliance. “Legal fees or other expenses affected 38.2% of participating SFOs. Reported costs range from $300 to $450,000, and average $64,000,” he added.

Among the 5^th Annual SFO Study findings:

• Two-thirds, 66.7%, say they have sufficient expertise to evaluate investment vehicles and strategies
• 35.3% outsourced the chief investment officer function to handle their investments, up from 31.8%
• 51.5% reviewed investment policy or practices, up from 39.5% last year; 27.3% actually changed investment policy
• One in five, 20.6%, say a family member was a victim of identity theft via the internet
• 11.8% say a family member was a victim of burglary or robbery
• 12.1% of family offices employ a security consultant

Alliance Research is supported by its partner firms, for without their leadership, this research would not be possible. These organizations are: Aristotle Circle, HUB International Personal Insurance, Rockefeller Financial, Rothstein Kass, Silver Bridge Family Office Partners, Spruce Private Investors, Summitas, and TriState Capital.

In addition to findings from The Alliance’s 5^th Annual SFO Study, experts at the Alliance Fall Forum will unveil findings from Alliance Research, including in-depth discussions of The Alliance’s 9^th Annual MFO Study. Also unveiled will be the findings and implications of the inaugural Alliance Security Study—which looks at acute, unforeseen and chronic security threats to private families. Final reports on the 9^th Annual MFO Study and Alliance Security Study will be available later this year. For more on the 5^th Annual SFO Study, please go to www.TheAllianceReport.com.

About The Family Wealth Alliance: The Alliance is a connector of firms and families who share its core value, “We Place Families First.” Known as an innovator, the firm chronicles, convenes, and consults. Through Alliance Research, the firm chronicles the family wealth space and spots trends long before others. Alliance Events convenes invitation-only gatherings featuring study results, trends and implications, with expert and partner panels, and peer breakout groups—an experience like none other. Alliance Consulting, currently the fastest-growing area of the firm, provides strategic solutions driven by Alliance Research and deep industry expertise. Details can be found on the firm’s website: www.FWAlliance.com. The Alliance is based in Wheaton, Illinois USA.

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