A Retail Trust Company Model for the Multi-Family OfficeA Retail Trust Company Model for the Multi-Family Office

Key family office personnel often serve as fiduciaries of family trusts and business structures, exposing them to significant personal liability while providing a workable, though limited, fiduciary solution to those families. This arrangement is common in single family offices (SFOs), but SFOs have a fiduciary alternative—a private trust company (PTC). Unfortunately, as a result of burdensome Securities and Exchange Commission (SEC) regulations, a single PTC isn’t an option for families in a multi-family office (MFO). The retail trust company model, however, may offer an efficient, long-term solution.

Before exploring the MFO trust company, it’s necessary to review a few key concepts: What’s a family office?  How are investment advisers ...