Family offices in Hong Kong are increasingly enforcing stringent family rules, including provisions that strip divorced members of asset management authority to reduce risk and preserve family cohesion.
Everbright Securities International Private Family Office cited examples where some family offices allocate up to HK$10 million annually for family trips, on the condition that all members attend to maintain unity. Others require any member who divorces to step down from the board and cease involvement in managing family assets to mitigate family-related risks.
The firm added that some family offices set a retirement age for the chief executive to ensure innovation and facilitate smooth succession. Rules that become outdated may be amended with the consent of a specified proportion of family members to maintain flexibility.
Amid changing market conditions, Alan Ko, head of Everbright Securities International Private Family Office, said some families that traditionally accumulated wealth through property investment are now seeking more stable returns through professionally managed investment platforms, fuelling interest in setting up family offices. Some mainland investors are also using family offices as a channel to arrange relocation to Hong Kong.
Families with multiple branches and complex structures may find it difficult to reach consensus, while some mainland families with simpler structures face fewer obstacles.
On competition, Ko added Hong Kong benefits from its Greater Bay Area connectivity and a more international client base. Singapore primarily serves Southeast Asia, while Dubai focuses on the Middle East. With stronger government promotion and rising market awareness, the company expects its family office business to achieve 15 to 20 percent growth in assets under management this year.
Cynthia ZHONG
