Meanwhile, the Chicago, IL-headquartered firm announced a raft of other organizational changes to its Personal Financial Services leadership team so as to “further align” its resources.   

The new family offices group will merge divisions across the US, Europe, the Middle East and Africa, serving ultra high net worth investors and their family offices alongside Northern Trust's Miami, FL business, which caters for international families, the firm said. Executive vice president J Kauffman will head up the group.

The news comes after a recent white paper from Optima Group said the “enhanced” family office model will come to dominate the UHNW wealth management landscape, in light of enduring anxiety following the financial crisis that is leading wealthy families to demand transparency and an end to conflict of interests. (To view an article on this click here.) 

Capital preservation, risk management and the responsibilities of wealth stewardship are all areas of concern for the ultra healthy in this new environment, the white paper said. “And trust, transparency, clarity and fiduciary responsibility have become, now more than ever, the paramount drivers in choosing financial advisory relationships,” according to Optima.

The white paper also noted the way large financial services providers were capitalizing on this trend, saying: “It is worth noting that formidable global entities such as HSBC, UBS, Citi and others, are also rapidly creating or expanding ‘family office service groups’ which market investment banking and other services to existing family offices.

“This increased willingness by industry giants to participate in the growth of MFOs, even where these providers do not control the ‘end relationship,’ is further recognition of the growing popularity and potential of the family office market.”

Further changes

In other developments within Northern Trust's Personal Financial Services unit, senior vice president Caroline Devlin will transfer from PFS strategy to focus on executing the PFS international strategy.

Meanwhile, executive vice president David Blowers, who heads the central region, will lead a newly-created east region, which will involve combining the southeast and northeast regions. Sheldon Anderson, executive vice president in the Southeast, will remain a member of the executive team.

The central region will be led by J MacLellan, who is executive vice president and global head of business practices and client segments for PFS, while executive vice president Douglas Regan - now head of the US-based UHNW division - will lead PFS sales and marketing.

Further changes, in order to “centrally support these regions,” include the incorporation of trust business and specialty advisory services into a unified advisory practice, led by wealth advisory services leader Charlie Mueller.

Additionally, Susan Mallory, who heads the Southern California offices, will assume the role of PFS banking practice executive, and Scott Dille, who now serves as director of client solutions, will lead a new team focused on client and partner experience.