WE’s Michael Zeuner Comments on the Blurred Lines Between MFOs and Private Banks in Private Banker International
September 29, 2015
In a recent article published by Private Banker International (PBI), WE’s managing partner, Michael Zeuner, comments on the increasingly blurry lines between multifamily offices (MFOs) and private banks. Traditional family offices are structured around all areas of a family’s wealth, from tax and philanthropy to succession planning and investments, and exist solely to cater to the needs and interests of the family. However, many large private banks are entering into the family office industry, which can lead to confusion and conflict of interest for clients.
The article delves into the structural and business model differences between MFOs and private banks, and whether or not they are equipped to truly serve the needs of clients conflict-free. Mr. Zeuner states that the key differentiator between family offices and other financial institutions is independence. “The role of a family office is to help a family buy products and services, it is not to sell them products and services, and the compensation that family offices receive is for their advise in assembling, managing, negotiating and putting together all the different providers.”
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