Publications
Author / Peter Lu‧呂旭明會計師、Max Lu‧呂嘉昕信託師
U.S. Trust and Estate Planning 美國信託規劃實務(英文部分)
Chapter 5 The Rise of the Global Family Office
What are the most important criteria when selecting a Multi-Family Office?
Selecting a Multi-Family Office (MFO) is a critical decision for high-net-worth families. Here are the most important criteria to consider:

1. Reputation and Track Record:
    • Reputation: Research the MFO’s reputation within the industry. Look for reviews, testimonials, and any potential red flags.
    • Track Record: Evaluate the MFO’s history of performance. This includes their success in managing wealth, client satisfaction, and the stability of their client relationships over time.
2. Services Offered:
    • Comprehensive Services: Ensure the MFO offers a wide range of services, including investment management, tax planning, estate planning, risk management.
    • Customization: Assess their ability to tailor services to meet the specific needs of your family.
3. Expertise and Experience:
    • Professional Team: Evaluate the qualifications and experience of the MFO’s team. This includes financial advisors, tax experts, legal advisors, and other professionals.
    • Specialization: Consider whether the MFO has experience working with families with similar financial profiles and needs. 
    • International Exposure: Cross-border families should pay special attention to the firm’s past experience with cross-border tax and estate planning.
4. Philosophy and Strategy:
    • Alignment: Ensure the MFO’s philosophy align with your family’s goals, risk tolerance, and values.
    • Asset Class: Evaluate whether the MFO has experience working with your family’s preferred investments, especially if your family has a large position in a particular asset class.
5. Transparency and Communication:
    • Reporting: Check the frequency and clarity of financial reporting. Transparent, regular reports are crucial for tracking performance and making informed decisions.
    • Communication: Evaluate the MFO’s communication practices. They should be accessible, responsive, and proactive in keeping you informed.
6. Fees and Cost Structure:
    • Fee Structure: Understand the fee structure and ensure it is transparent. These often include annual consulting fees and itemized service charges. Certain MFOs may also charge a fee as a percentage of total assets or assets under management.
    • Value for Money: Assess whether the services provided justify the costs. Compare the fee structures of different MFOs.
7. Client-to-Advisor Ratio:
    • Attention: A lower client-to-advisor ratio generally means more personalized attention and better service.
    • Accessibility: Ensure your family will have sufficient access to advisors and their support.
8. Cultural Fit and Trust:
    • Cultural Fit: Ensure the MFO’s culture and values align with your family’s. This includes their approach to wealth management and client relations.
    • Trust: Building a trusting relationship is crucial. You should feel confident in their ability to manage your resources and act in your best interests.
9. Technology and Innovation:
    • Technology: Evaluate the MFO’s use of technology in managing investments, reporting, and client communication.
    • Innovation: Consider whether they are innovative and adaptable to changing financial landscapes and client needs.
10. Regulatory Compliance and Risk Management:
    • Compliance: Ensure the MFO adheres to regulatory standards and has strong governance practices.
    • Risk Management: Evaluate their risk management practices and how they protect clients’ assets.
11. Client References:
    • References: Ask for and check client references. Speaking with current or former clients can provide valuable insights into the MFO’s performance and client satisfaction.
Selecting the right Multi-Family Office involves thorough research and careful consideration of these criteria to ensure they meet your family’s specific needs and can effectively manage and grow your wealth.