While less than one quarter
of traditional US financial advisors provide “some level” of multifamily office service, 80
per cent have expressed an interest in doing so, according to new research from Rothstein Kass.

The study, entitled The Family Office Model: A Smart Move for
the Financial Advisor?, explored the ways in which financial advisors are
confronting the growing demand for family office services among their wealthy
clients.

About 60 per cent of
advisors indicated that they would consider introducing family office services
for “select clients,” while an additional 17 per cent expressed interest in
launching a comprehensive platform, the study found.

“Demand continues to surge,
driven by increased awareness among wealthy families of the advantages that an
integrated wealth management approach provides,” said Rick Flynn, principal and
head of the Rothstein Kass Family Office Group.

The advantages of providing
family office services include greater client retention, enhanced revenues and
improved client acquisition, he added. “However, the decision to introduce
family office services is not one that should be taken lightly.”

Flynn therefore recommends
that advisors undertake a “thorough assessment of current competitive
positioning,” as this can indicate which services will be of most value to existing
and prospective clients.

Survey participants
included independent advisors (44 per cent), registered representatives (35
per cent) and registered investment advisors (21 per cent).

Rothstein Kass serves
privately-held and publicly-traded companies, as well as high net worth
individuals and families.