Study on Family Offices in Switzerland Shows Thriving Sector

Contributing Editor

5 October 2005

The first comprehensive study on Swiss family offices has shown rapid growth in the sector as very wealthy families, not just from within Europe but increasingly from outside the continent, invest their money in Switzerland. The survey, carried out by the Swiss business school, HEC Lausanne, and sponsored by Close Trustees (Switzerland) and Hakan Hillerstrom, an independent family business advisor, found a thriving family office sector in Switzerland, but highlighted many challenges for family office businesses as they become increasingly mature businesses. “The study clearly demonstrates that Switzerland with its financial security, political stability and tax system is a premier location for family office operations,” said Daniel Martineau, Managing Director, Close Trustees (Switzerland). The major findings of the report included:

Family office business is in a growth phase

No unique definition of the family office business exists but there are several common characteristics which are identified

Competitive advantages relate to the size and type of family office

Jurisdiction is an important factor in locating a family office

“The growth of the number of single and multi-family offices in Switzerland might be contributory factor to the decline of the traditional private banking model,” said Mr Hillerstrom. WealthBriefing will be looking into the main findings of the report over the next week.