Family Offices Expect Higher Fines For Regulatory Breaches – Study

Editorial Staff 8 April 2024

Family Offices Expect Higher Fines For Regulatory Breaches – Study

The study, undertaken around the world, examines the views of family offices and senior figures in areas such as property, venture capital and private equity, among others.

A survey of 301 senior executives, including 50 managers of family offices around the world, found that they face higher fines for breaking regulations.

The study from Ocorian, which provides regulation and compliance services for funds, corporates, capital markets and private clients, showed that 80 per cent expect the number and overall value of fines issued in their sector for breaking regulations will increase, with 16 per cent expecting a dramatic rise. 

Some 92 per cent said their organisations are preparing or budgeting for a potential increase in fines they could face.

Nearly nine out of 10 (88 per cent) interviewed believe their market is over regulated; despite this 84 per cent think that the level of regulation will increase over the next five years.

The survey comes at a time when the regulatory environment is becoming more demanding, given the continued evolution of anti-money laundering laws, for example.

When it comes to their organisation adhering to regulations in the different jurisdictions in which they operate, only 32 per cent of those surveyed say it is not an issue – 24 per cent said they find this very difficult to do this, and 44 per cent said it is quite difficult. Some 56 per cent said their organisation will find it more difficult to do this over the next five years. Only 14 per cent think it will become easier. 

The survey was carried out among board directors at companies with an annual turnover of more than $250 million, fund managers working in family offices, private equity, venture capital and real estate, and senior executives working in capital markets focused on structured credit, CLOs, securitisation, mortgage-backed securities and asset- backed securities. Respondents to the survey, which was conducted in November 2023, were based in the UK, continental Europe, Asia, the Middle East and North America.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes