Why super-rich are rushing to relocate family offices

A rich businessman holding a wad of money. [Courtesy/GettyImages] Wealthy individuals are considering relocating their family offices to new jurisdictions to protect their wealth from being eroded by inflation. A report by Standard Chartered Global Private Bank also lists cyber security and geopolitical tensions as the other reasons behind the planned relocation, as these individuals deploy strategies to safeguard generational wealth. The report titled, 'The Great Repositioning: How Ultra-wealthy Families are Rewiring for a Fractured World,' cites that more than half of super rich (54 per cent) have plans to relocate their family offices to new countries in the next 12 months. Due to the listed reasons, proximity to family is no longer a treasure for the high-net-worth individuals (HNWI). It states that traditionally, family office decisions were centred on proximity to family, favourable tax regimes and established financial infrastructure. "Today, the choice is shaped by a broader set of factors. Issues such as cyber security, geopolitical stability and access to talent are carrying increasing weight," the report says. Global Head of Wealth Planning and Family Advisory at Standard Chartered Global Private Bank Mike Tan is quoted in the report as saying that where a family office is located can offer strategic advantages. "Offices hold vast quantities of sensitive financial and personal data. Jurisdictions with strong regulatory safeguards, sufficient professional support networks and advanced digital infrastructure not only offer greater protection, they also attract the calibre of talent needed to secure and grow wealth in the long run," he adds. The report adds that the fact that 54 per cent of families are considering relocating some of their family offices to new countries in the next one year suggests a pivot in their thinking. While the overall sample cites geopolitical stability (48 per cent) and inflation (41 per cent) as the main short term concerns, the report details that those considering a move are more forward-looking as their top three priorities are cyber security (36 per cent), geopolitical stability (28 per cent) and access to wealth management talent (26 per cent). "This suggests that relocation is not merely a defensive measure but one that can strengthen resilience and diversification," the report says. Families considering relocation expect capital market volatility (25 per cent), tariff changes (23 per cent) and regulatory changes (20 per cent) to intensify in the next three to five years. "Regulation is a defining challenge for our interviewees," the report says. A chief executive of a Dubai-based family office interviewed in the report noted that the continuous regulatory changes in some jurisdictions carry large risks. "We expect changing tax environments to become an even bigger concern as the world goes through this period of de-internationalisation and protectionism. We are actively trying to rationalise our exposure to multiple jurisdictions," another executive from a Hong Kong-based family office added. The report argues that geopolitical instability, digital disruption and social change are putting unprecedented pressure on traditional approaches. "The question is no longer simply how to manage assets but how to safeguard wealth in a rapidly shifting landscape," it says. The report draws its findings from a global survey of more than 300 ultra-high net worth families and their advisors. It is supplemented by in-depth interviews. Kenya has about 6,800 dollar millionaires according to the Africa Wealth Report. This figure stood at 7,216 in 2024. When asked what the main concerns are in the next three to five years that will impact your wealth, cyber security, at 37 per cent, topped the list. Harnessing advanced technologies (27 per cent) and availability of wealth management talent (26 per cent) closed the top three list. Other issues raised are capital market fluctuation, succession planning, sustainable and impact investing, tariff changes, regulatory changes, disinformation and trust issues, inflation and geopolitical stability. "Together, these shifts point to a new approach that we call Adaptive Wealth Architecture: agile, professionalised and technologically enabled frameworks designed to turn threats and tensions into enduring resilience," the report says. The report states that local policy pathways for tax-exempt income and gains illustrate this tension. Currently, family offices based in certain United Arab Emirates (UAE) free zones may benefit from a zero per cent tax rate on qualifying income, while Hong Kong family offices may also enjoy profits and tax concessions, both subject to specific conditions. "Meanwhile, Singapore offers tax exemptions to fund vehicles managed by Singapore-based fund managers, including family offices, provided they meet certain conditions," the report says. It adds that while these advantages are certainly attractive, sudden changes could have significant financial repercussions. The report points out that the geography of wealth management could look different by the end of 2030. "Location is not just about avoiding risk - it is about defining your family's long-term positioning on an evolving financial map," it says. "Families that prioritise digital maturity, regulatory resilience and access to opportunities hold a clear competitive advantage."

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