This year’s Guernsey Private Wealth Forum featured two panel sessions exploring changing family dynamics, generational handover, economic uncertainty, and the impact of market trends on private wealth.
If you missed the conference, here's a round-up of some of the key discussions during the day.
A global and personal approach to wealth advice is needed
With global families on the rise, Charisse Crawford, Partner at Trowers & Hamlins, made the point that “it is so important to get the right advisers in place at the start.”
There was a general agreement that each client needs a personalised service, with Samuel Bosanquet, Family Office Services Director at Schroders, commenting that: “a genuine conversation is worth many times more than the piece of paper that comes out at the end.”
Whether that conversation focuses on a specific philanthropic quest or a plan for generational handover, he added that thought needs to go into “more than just the financial aspect of what we’re trying to achieve.”
David White, Managing Director at QB Partners, seconded this sentiment, saying that HNWIs often prioritise personal contact, despite the rise of technology and AI in finance.
He added that “ensuring that the structures that advisers are recommending are portable from one jurisdiction to another, is vital."
Secure succession planning is essential
With family dynamics growing more complex than ever, assets that pass down from one family member to another have a higher risk of being eroded.
Charrisse examined this, saying: “There’s nothing worse than seeing assets eroded when at the succession planning stage, something could have been done to perhaps protect that asset.”
"It is all about making sure the wealth does survive through the generations,” said Greg Limb, Partner and Global Head of Family Office & Private Client at KPMG.
And with attitudes on themes such as liquidity, risk tolerance, and ESG investing changing from generation to generation, the best solution is to set up a governance structure where the family is in agreement, said Nick Rees, Managing Director at Cambridge Associates.
Something which can assist in this, is to “test drive the process” with something called a death rehearsal, which is “highly important and less contentious,” said Samuel.
Embracing disruption
Taking into account the speed at which the world is evolving, we should embrace disruption, said Nick.
From an increase in concern about global dislocation to the regime change in monetary policy and the role of central banks, these trends are impacting investments in real terms, said Diana Robinson, Managing Director and Head of Investments & Advice at J.P. Morgan.
But Nick said: “These things shouldn’t come as a surprise, and when you’re trying to implement an investment decision, it’s very difficult to remove our emotional tendencies."
He highlighted the role of the adviser, emphasising that they can help to remove that emotional barrier and work to achieve long-term goals.
Adapting to the next generation
“Adapting our style to suit” is key, said Greg.
He emphasised the need for advisers who “speak the language” of the younger generation clients.
Perhaps unsurprisingly, all panellists agreed that younger investors are opting to invest with ESG impact, but not solely for impact.
Nick said: “We’re not seeing clients investing in ESG just because it is there, but because it's very financially credible.”
The role of IFCs such as Guernsey
Guernsey can provide political and economic stability in an uncertain world, was the endorsement of David.
On what influences jurisdictional choice, Samuel stated the importance of the four Ds - death, divorce, dispute, and disposal.
He added: “Guernsey has unique and admirable structures, such as foundations, purpose trusts, that can offer families things that they can’t otherwise access.”
Greg echoed this statement, saying: “We see places like Guernsey, that have a system that allows families to understand the world, and tread carefully, as the way forward.”
