Basics
Single vs. multi family office: the differences
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español
Short answer
A single family office works exclusively for one family and is usually owned by it. A multi family office serves several families as a service provider. They differ in cost, regulation, confidentiality and organisation: the single family office is fully tailored, while the multi family office shares expertise and infrastructure and must keep mandates strictly separate.
Two models, one goal
Both models bring together what a wealthy family needs across banks, companies, foundations and countries: an overview of the wealth, administration of the structures, tax, succession, governance and coordination of external advisers.
The difference lies in who the office works for. The single family office is a family's own office. The multi family office is a firm that offers the same services to several families and charges fees for them.
Comparison at a glance
The table summarises the typical differences; hybrid forms exist, such as a single family office that later takes on further families.
| Criterion | Single family office | Multi family office |
|---|---|---|
| Client | one family, usually the owner | several families as clients |
| Cost | the family bears fixed costs alone | costs are spread across many mandates |
| Tailoring | fully tailored to one family | standard processes with individual elements |
| Regulation (Switzerland) | with purely family ties, in principle no FinIA licence | managing third-party assets generally requires a licence |
| Confidentiality | one family, few people | strict separation between families is essential |
| Software focus | structure, consolidation, family portal | mandate separation, KYC/AML, billing, team roles |
Regulation: when a licence is needed
In Switzerland, the Financial Institutions Act makes professional asset management for third parties subject to a FINMA licence; ongoing supervision is carried out by a supervisory organisation. Persons who manage only the assets of persons with whom they have economic or family ties are exempt (Art. 2 para. 2 let. a FinIA).
A classic single family office is therefore often exempt from the licensing requirement, while a multi family office usually is not. Anti-money laundering due diligence may apply regardless. Germany, Austria and Liechtenstein have their own licensing rules; what matters is whether services are provided to third parties.
Organisation and cost
A single family office bears staff, systems and premises on its own. This pays off when wealth, complexity and the wish for control are large enough. A multi family office spreads these fixed costs across many families and offers access to specialists that a single office could hardly afford.
In return, the multi family office must standardise processes, define responsibilities clearly and shield each family from the others – organisationally and technically.
What this means for software
For the single family office, the priorities are mapping the family structure down to each natural person, consolidated wealth across all banks and companies, and a secure portal for the family. For the multi family office, strict mandate separation, demonstrable due diligence per family, four-eyes approvals, time tracking and invoicing are added. FLIORE covers both profiles in one system.
Frequently asked questions
What is the main difference between a single and a multi family office?
The single family office works only for one family and is usually owned by it. The multi family office serves several families as a service provider.
Does a single family office in Switzerland need a FINMA licence?
If it manages only the assets of persons with economic or family ties, it is in principle exempt from the FinIA licensing requirement. The assessment depends on the individual case.
Does a multi family office need a licence?
Anyone managing third-party assets on a professional basis generally needs a FINMA licence in Switzerland and is supervised by a supervisory organisation.
When is a dedicated single family office worthwhile?
When wealth, structural complexity and the wish for control justify the fixed costs of an in-house team. There is no fixed threshold.
Can one software cover both models?
Yes, if it maps the structures and wealth of one family as well as the separation of many mandates, roles and billing. FLIORE is built for this.
Sources
- Swiss Financial Institutions Act (FinIA/FINIG, SR 954.1) – Fedlex
- FINMA – Portfolio managers and trustees
- Swiss Anti-Money Laundering Act (AMLA/GwG, SR 955.0) – Fedlex
- FATF Recommendations – Financial Action Task Force
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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