Generational differences between family office members are beginning to surface, with younger generations set to widen their reach of trusted advisers compared to the founding generation, according to Ocorian.

The family office service provider’s global study of family members, family office employees, and intermediaries found that 96 per cent believed the approach and priorities of the next generation differed from the founding generation.

More than a quarter (28 per cent) said it differed significantly, while just 3 per cent said there were no differences between the generations.

Almost all (97 per cent) believed the next generation would widen their reach of trusted advisers compared to the founders, with 10 per cent saying this would widen significantly.

At the same time, 92 per cent of family office members said they were only slightly aware of the full scope of offerings provided by the third-party client service firms they use.

Despite the planned changes, 95 per cent felt that the next generation had strong relationships with the private client professionals the founding generation already work with.

This included 64 per cent who said they already had a strong relationship and 31 per cent who said they were starting to establish strong relationships.

When asked about their relationship with private client service providers, 78 per cent of family office members said they were ‘somewhat’ involved in decision making around their wealth but generally took the professionals’ advice.

Just over one in 10 (11 per cent) were actively involved in managing their wealth and said professionals were there for governance and regulatory reasons only.

A further 11 per cent said they made no day-to-day decisions about their wealth and left them to their service providers, but instead shaped the strategy around their wealth management.

Family offices were generally happy with their banking intermediaries, with 98 per cent rating them as excellent or good.

By comparison, 66 per cent rated their tax advisers as either excellent or good, and 57 per cent rated their law firm as excellent or good.

More than half (51 per cent) believed the private client industry needed to improve significantly to better serve clients, while 37 per cent said slight improvements were needed, and 12 per cent said no improvements were required.

“With many family offices preparing for or undergoing a succession of wealth, our research shows that the next generation may well decide to do things differently,” commented Ocorian regional head, private clients, APAC, Andrew Ho.

“It’s a period when many are likely to lean on their professional support more than ever, but at the same time they will also be looking to establish new relationships, strategies and ways of working.”

Merliance Capital managing partner and head of wealth management, Jack Koo, added: “We are seeing first-hand how rising generations are reshaping the advisory landscape. They value continuity, but they also expect broader perspectives, greater transparency and a more collaborative approach from their professional partners.

“As family offices redefine how they work with advisers, the firms that thrive will be those able to combine long-standing trust with innovation and a truly global view.”

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