Governance guide
Building a family office team: roles, sequence, risks
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español
Short answer
A family office team usually starts with a head who has the family's trust and a specialist for finance and administration. Depending on the focus, investment, compliance or accounting follow. Much remains outsourced: asset management, tax, legal, IT operations. What matters are clear roles, deputies and a way of working that documents knowledge rather than keeping it in people's heads.
The typical sequence
- Head: the family's trusted person, a generalist with leadership experience.
- Finance and administration: bookkeeping, payments, reporting, documents.
- Focus function: investment (CIO) for large liquid wealth, compliance for many structures and regulated activities.
- Assistance and family services: appointments, travel, properties, insurance.
- Further specialists as soon as volume and complexity justify them.
In-house or external?
What requires trust, an overall view and steering belongs in-house: coordination, reporting, control of service providers, preparation of decisions. What needs specialised expertise or economies of scale can be bought in well: management of individual mandates, tax returns, legal advice, IT operations, payroll. The line shifts with size; a lean team with good technology can achieve a surprising amount.
Profiles and recruitment
The search is for people who combine discretion, judgement and generalist knowledge. Many come from private banking, audit, fiduciary services or corporate finance. Besides expertise, the fit with the family counts: a family office is a small organisation with a close relationship to its owners. References and a probation period with clear objectives matter more than in large companies.
Limiting key-person risk
- Give every role a deputy, even if the deputy is external.
- Document processes, access and deadlines rather than keeping them in your head.
- Distribute powers of attorney and signing authority so that no one has to act alone.
- Keep data centrally rather than in personal folders and mailboxes.
- Discuss succession for the head of the family office early on.
Remuneration and retention
Family offices compete with banks and consultancies for staff. Besides a market-rate fixed salary, long-term components, further training and the particular quality of the work help: proximity to decisions, variety and continuity. Confidentiality obligations and non-compete clauses belong in every employment contract.
In FLIORE
FLIORE supports lean teams with roles and rights, tasks with due dates, an audit trail and a manual for every module. Knowledge stays in the system when people change, and new team members find their way faster.
At a glance
| First hires | Head and finance/administration |
|---|---|
| Typically outsourced | Asset management, tax, legal, IT operations |
| Biggest risk | Knowledge held in the heads of a few people |
Terms on this page
- Audit trail
- An unalterable log that records who created, changed, approved or deleted which data and when.
Frequently asked questions
How large is a typical family office team?
The range is wide, from a single person to large teams. Many single family offices work with a few employees and external partners.
Is a dedicated CIO needed?
Often yes, for large, actively managed liquid wealth. Where wealth sits mainly in a business or in real estate, monitoring external managers is often enough.
Should family members work in the family office?
That can make sense, but it requires clear roles, market-rate terms and a rule for conflicts between the family role and the professional role.
How is the head of the family office overseen?
Through the family council, an advisory board or the board of directors of the family office company – with clear objectives, regular reports and the four-eyes principle for material decisions.
How long does building a team take?
For the first key functions, expect several months, because suitable profiles are rare and trust takes time. A transitional solution with external partners and good technology bridges this phase.
Sources
- Swiss Code of Obligations (OR, SR 220) – Fedlex
- German Civil Code (BGB), service contracts sections 611 et seq.
- STEP – Society of Trust and Estate Practitioners
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
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