As the aftershocks of the economic crisis continue to disrupt markets worldwide, some of Europe’s top private wealth management industry executives came together at the recent marcus evans Elite Summit 2010, the leading private wealth management event, to share insights and strategies for unearthing the opportunities in today’s highly volatile investment landscape. 

In his opening keynote presentation, Charles Lowenhaupt, the Chief Executive Officer at Lowenhaupt Global Advisors, addressed the need for the adoption of the ‘Global Standards for Private Wealth Management’ by family offices, to ensure that the management of significant wealth remains constant and stable even in perilous times or under dangerous conditions. In the aftermath of a crisis that was plagued by instability and fraud, it has become essential for family offices and wealth managers to take this step in order to regain the trust and confidence of private wealth holders. “The Standards are what every family needs in this era of distrust,” Lowenhaupt said. 

The first question that family offices should ask high net worth individuals is, ‘What do you want to accomplish with your money?’ and align all strategies accordingly. Families are not intuitively process orientated, Lowenhaupt explained, but processes are needed for functionality. The Principles need to get into the family offices’ DNA so that each individual knows what to expect from the other. Uniform, objective standards make sense for the private wealth management industry and the benefit of wealth holders, Lowenhaupt remarked.

Dr iur Kurt Moosmann, Co-Founder and Managing Partner of Dara Capital discussed governance frameworks in his presentation, “Achieving Sustainable Wealth Preservation by Adopting an Effective Governance Framework”. The audience was captivated by his thorough analysis of how internal and external risks can be managed, in order to preserve and grow wealth for future generations. Death, divorce, inadequate education or intra-family conflict are just a few common circumstances which could pose as a serious threat to wealth. Therefore, it is important to consider a comprehensive estate plan and family governance, which includes but is not limited to diversifying and monetising concentrated holdings, managing liquidity, choice of manager and leadership succession, to guard against potential risks and to preserve wealth over generations.