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Planning to avoid family conflict
The wealth management industry tends to sing similar tunes. The strength of an individual private bank’s voice might vary, but the songs don’t.
Sometimes they emphasise open architecture, other times digital technology, philanthropy, holistic service, all-round corporate strength or access to trophy assets.
An especially loud trope at the moment is “succession planning”.
In terms of succession planning, many family businesses fail, not due to poor business strategy but because they have not developed strategies to address they will face over time, Bernard Rennell, regional head of global private banking, Asia Pacific at HSBC, tells Asian Private Banker. (subscription)
Planning needs to take in account:
Important questions which, left unanswered, sow the seeds of family conflict and ultimately lead to the destruction of family wealth. These questions include how the family will work together after the key decision-maker dies or becomes incapacitated, and what structures and processes will be put in place for differences of opinion to be aired, while ensuring prompt and effective decision-making.
Photo: Kirill ?/? Voloshin