Insights
By: Colin Bird
Compliance, Value and Robust Structures
Family offices must evolve to meet the changing needs of their clients. As the world becomes increasingly complicated for people with complex affairs, the family offices advising them need to understand how to tie specialist, expert advice together across jurisdictions.
We were once asked to review the steps in a large a transaction involving three jurisdictions. The intended steps to implement the transaction might have cost the company millions in capital gains tax. We were able rearrange the implementation steps to achieve the intended outcome without the exposure to capital gains tax. Our experience in cross border transactions meant we could add value by coordinating the advice so that the transaction could take place in a more efficient way.
The biggest challenge for clients with complex international affairs is compliance. Over the past two decades, we have seen an increase in compliance-related disclosure requirements. When you have a complicated structure involving wealthy people with multi-jurisdictional interests, the right reporting to the right authorities is crucial. Part of our role is to educate our clients about this new reality, which requires detailed record keeping, good governance and an intimate knowledge of their business and personal affairs.
Among our client base, there has been an increasing focus on value for money. This has been partially impacted by the current inflationary climate. As long as we keep focusing on excellence and high quality service, our clients will continue to want to remain part of the Stonehage Fleming family.
I have also noticed an increasing interest in the robustness of structures. Part of this may be attributed to the Covid pandemic, which made people more aware of the risks they and their loved ones faced. We have seen clients considering the impact of death or divorce or an attack by external creditors on their wealth-holding structures. Families are increasingly interested in the integrity and robustness of structures in relation to their ability to protect, manage, and grow their wealth. We are here to help them with that.
Find out more about Stonehage Fleming's Legal & Tax Advisory