THE multi-client family office in the United States is a multi-disciplinary wealth management firm that offers family office services for a number of clients.

This is an option that offers the best of both worlds -- services that are tailored to the needs of high net worth individuals while taking advantage of economies of scale and the opportunity to delegate to professionals.

A multi-client family office makes sense for many individuals and family groups who want a provider that is intimately familiar with the needs of the client and capable of delivering a comprehensive service menu for a competitive price.

Families and individuals sometimes decide not to set up their own family office because they do not want to be responsible for managing a financial services business. They prefer the continuity offered by an established institution which they can rely on to evaluate and manage the various financial service professionals.

There are many differences between the multi-client family office and the traditional single family office:

l The single family office normally services one family and the multi-client family office services multiple families

Families who use a multi-client family office find that they realise most of the advantages of a dedicated office without the overheads and responsibility of managing a newly-formed financial business.

Despite the fact that a multi-client family office services more than one family, each family client still enjoys the full benefits of a single family office. These include:

- Integrated wealth management services under a boutique structure;

- Access to a high level of client service from an experienced staff of professionals who serve a limited client base;

- More direct family control over financial matters;

- The satisfaction of affiliating with an organisation whose goals are aligned with those of their family;

- Comprehensive assessment of financial goals;

- Customised solutions / strategies for each household;

- Proactive management of client affairs;

- Ongoing education about the responsibilities of ownership;

- Focus on the continuity of the family across generations and branches; and

- The assurance of confidentia-lity in the management of financial and personal affairs.

It costs at least RM1 million a year to operate a single family office, but less than RM20,000 a year to utilise the service of a multi-client family office.

By offering its services to more than one family, a multi-client family office provides the benefits of family office service with a more affordable price to the mass affluent.

Traditionally, you needed assets of at least RM100 million to operate a viable family office service. Now, with cost-sharing and the latest technology, a multi-client family office is within reach for those with assets as low as RM2 million.

l The single family office's wealth maximisation experience is limited to one family while the multi-client family office shares a wealth of experience gained from multiple families.

A multi-client family office has a stronger team of professionals to collaborate on complex problems and they can tap the expertise of the firm's content specialists whenever necessary.

A multi-client family office team structure can help ensure continuity if a relationship manager leaves the firm. A larger multi-client family office can invest more in technology solutions than independent single family offices because of the collective buying power of the clients.

l The single family office's service scope covers non-financial management aspects in addition to financial wealth management whereas the multi-client family office focuses on financial wealth management

Since the single family office is owned by a family, it also helps the family to handle non-financial management aspects such as housekeeping services encompassing primary residences, automobiles, private jet airplanes, boats or yachts, racing stables, second homes and other family assets; organising family activities like annual retreats, travel planning, parties and other concierge services; security management that involves providing introductions to experts in personal, home and travel security and arranging for appropriate insurance to cover kidnap and ransom r isks.

The ultra-affluent client is increasingly aware of the need to choose his or her multi-client family office whose goals are aligned with theirs.

Characteristics of a good multi-client family office A good multi-client family office has these characteristics: Objective financial advice The family office must be free of conflicts of interest. As most private bankers are paid to gather assets under management, they may not have the time or inclination to seek the best financial advice from all providers.

 But the team in a good family office is not only free to do so, but also works to choose well among the products and services from all suppliers in the marketplace.

Creative solutions to financial p r o bl e m s The family office team must be knowledgeable about a broad array of sophisticated strategies.

 This means that the team must consist of skilled professionals with experience across many technical disciplines, including tax, legal, investment, and risk management issues.

Consistent delivery of complex ser vices The family office must have the ability to deliver a high quality of service in a consistent manner to a growing number of clients.

 This requires the team to solve unique, complex issues for the client and h ave a sophisticated back office system that can keep track of financial details.

Long-term view of relationship bui lding The family office must operate from a revenue model that rewards and motivates long-term relationship building.

Otherwise, the clients will be subjected to the perennial problem of being treated as a sales target which is neglected after each product purchase.