The family wealth or wealth management companies respectively, the well-known Family Offices, having the right of confidentiality for their actions are faced with the biggest challenge of their short history, The abolition of their privacy.
Family Offices data, functions, and services (see analysis with title «Family Office: How an Attractive Framewrok for the Development of this Industry Is Formed») were targeted by the US Securities and Exchange Commission following the collapse of hedge fund Archegos Capital Management.
by Thanos S. Chonthrogiannis
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Pressure from social groups to the relevant state and regulatory authorities respectively is great and is intended to oblige by passing a law to compel family offices to disclose both their transactions and the content of their work.
The aim is to provide a strict regulatory framework of specific rules to control funds managed by Family Offices that exceed $6trillion worldwide.
The objectives of the competent regulatory authorities are to oblige Family Offices to disclose their positions in derivatives and the amount of their positions in them. The same applies to stocks and bets.
Family Offices’ arguments against their intentions if they force them to remove their privacy are since Family Offices manage the wealth of an individual or family and do not serve external customers.
But Family Offices that manage the wealth of more families should be considered as investment firms, and by law they are required to notify the Securities and Exchange Commission.
