With more family offices being launched every year around
the world as demand grows, a key challenge is ensuring high standards are
maintained so that what is meant by “family office” is not degraded, a network organization
representing much of the sector says.

Ahead of the Family Office Exchange Fall Forum (October 28-30) at Chicago’s JW Marriott
hotel, one of FOX’s leading figures spoke to Family Wealth Report about what
sort of prominent discussion points are likely to arise at this gathering.

“It is a mission for us at FOX to maintain the quality of what
is meant by a family office,” Michael Sallas, director of education design and development of education programs at
the organization, said. An educator, Sallas has developed educational
programs domestically and internationally for the public, private, and
non-profit sectors. He has created professional designation and certification programs.

Although estimates are hard to come by - some studies say there are more than 3,000 family offices in the US alone - anecdotal evidence certainly suggests the sector is thriving, not just in North America, but in other parts of the world. The sector is relatively young in Asia, but with that region's predominance of family-run businesses, the potential for associated family office growth is large.

Sallas said the rapid proliferation of family offices meant
it is essential to monitor the quality of organizations that use that label and
ensure that standards are monitored and maintained.

The conference program – which is off-limits to the media to
ensure members can speak their minds as freely as possible – touches themes
such as “engaging the next generation”; “benchmarking compensation and
incentives to remain competitive and retain key talent”; “fostering teamwork in
the governing board and family”, and “deploying capital in private equity and
other smart investment decisions”.

The three-day event will include a keynote from
neuroscientist Tali Sharot on her book, The Optimism Bias, which details
research suggesting that human brains are hardwired to be optimistic – and what
are the associated dangers and benefits.

Among the features are a “gap analysis” comparing the
delivery of industry services to the needs of complex multigenerational
families. The analysis study results from the work of the FOX Thought Leader
Council detailing the key services required by the ultra-wealthy in today’s
private wealth management industry across a range of disciplines. These
include investment, tax, estate and fiduciary planning, insurance, governance
and philanthropy.

FOX told FWR that, in total, over 330 people are expected in
Chicago’s event, comprising some 200 family members and family office
executives on the family day, then adding another 80 advisors on the all-member
day, as well as speakers and FOX staff.