Two minutes with Priyanka Hindocha, Director – Family Office
Family governance is at the heart of everything we do as a family office. Part of our team’s role is to guide families through a process that enables challenging discussions to take place and a family’s purpose, vision and values to be outlined. Once articulated, a family’s purpose can be used as the foundation for every decision a family makes - whether that’s regarding investment strategy, tax planning, structuring, philanthropy or next generation engagement. Our team is often the starting point for wider interaction with the Stonehage Fleming Group, providing support to implement these decisions.
Non-financial risks are the biggest threats to wealth. Even during the pandemic - an environment of heightened volatility from a financial perspective - families have been consistent in identifying the main risks to their wealth as intangible risks such as family disputes, a lack of leadership and planning and a failure to engage with the next generation. We work with families individually and collectively to help them establish a framework for decision-making that identifies and mitigates the risks to the family and its wealth in the future. The next generation often plays a key role in the process of developing such a framework.
Governance frameworks vary from family to family. Some summarise the collective purpose of their wealth in three bullet points, whereas others base their governance structures around a full family constitution or charter - which in some cases can be incredibly detailed. Such documents should be reviewed and revisited regularly to ensure that subsequent generations also have a voice in relation to the shared family purpose. Having done this with many different families in the past, we know which questions to ask and can share our ‘practical wisdom’.
The next generation challenging the status quo is a great thing. Change can be positive. Involving the next generation in conversations about the family wealth is almost always a good thing. ‘Making an impact’ often comes up when we ask the next generation about their vision for the future. For some this will relate to their investment strategy or their philanthropic endeavours. For others, this may mean a focus on sustainable principles when it comes to their entrepreneurial ambitions.
Having a diverse family governance and succession team is crucial. Our different ages, genders and experiences allow us to bring a range of perspectives to the table and mean that we all have a different angle on the challenges our clients are facing. It‘s important that all family members feel comfortable with the advisers they are working with and a varied team supports this. Our role is not to impose our views but to establish a forum in which all family members feel that they can share their opinions. The result should be that even if family members don’t agree, they understand why decisions are being made.
Priyanka is the youngest female Director in the company after being promoted in June 2021. She is a Relationship Manager in the Family Office department and supports a number of high net worth families with their day-to-day affairs, as well as with the implementation of family governance and succession structures for the long term