In an uncertain world, you can never be too prepared


HSBC Private Banking’s family office offering helps wealthy families plan for the future


WHILE THE COVID-19 pandemic has seen a surge in the fortunes of some ultra-high-net-worth individuals worldwide, it has also exposed potential vulnerabilities within even the wealthiest families. Death, relationship breakdown, business risk and failed succession plans are all common sources of problems – and have all been exacerbated by the pandemic. ‘Families learned that you can


never be too prepared,’ observes Caroline Kitidis, HSBC Private Banking’s head of UHNW, EMEA and US, who has more than 20 years’ experience in banking. Since March 2020, Kitidis has seen a shift as the next generation of family members have become increasingly involved in their families’ affairs, often possessing a completely different vision from their parents. ‘This new generation of business leaders often want to invest


capital and carry out philanthropy through the ESG lens,’ she says. Families are increasingly experiencing competing priorities across the generations, and without careful planning, crucial relationships can be put at risk. To address these pressures, well-advised families have been far more proactive in planning for the future. Kitidis points out how more UHNWs have been focusing on diversifying their investments across not only asset classes but also sectors and geographical regions to better support their international affairs. Families are also scrutinising their own governance strategies, which include succession planning, according to Russell Prior, who leads HSBC Private Banking’s family office advisory proposition. ‘Parents have thought about future plans but haven’t communicated them clearly with the


next generation. For some this might cause an expectation gap across generations; for others it might mask significant differences of view about the future.’ In efforts to improve communication and coordination among family members, some UHNWs have chosen to create family office structures for the first time, according to Jeremy Franks, a chartered tax adviser who is responsible for HSBC Private Banking’s wealth planning and advisory for EMEA. From previous experience of working within a family office, Franks knows that creating a family office is not something that should be undertaken lightly. This is an area he believes the bank is very well-positioned to help UHNWs with, where its experienced advisers constructively challenge families on their objectives ‘so they are crystal clear’ about their goals and aspirations.


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