Interview with: Sean Cortis, Principal & CEO, Chapman Eastway

1. Interview with: Sean Cortis,
Principal & CEO, Chapman Eastway
“Many families feel enslaved to their
structures which are often rigid and
virtually impossible to unbundle without
at least incurring significant tax and
other costs,” says Sean Cortis, Principal
& CEO, Chapman Eastway. “Flexibility is
critical in managing the long-term
interests of a HNW family; particularly
since in many instances, issues of
legacy and preserving family tradition
further compromise or inhibit the
family’s ability to unbundle,” he adds.
Cortis is a speaker at the marcus
evans Private Wealth Management
APAC Summit 2017, in Macao, China,
10 - 12 April.
Why should the family office
structure be flexible? How do family
needs change over time?
Families are multi-generational and
complex – each generation of individu-
als is socialised by and exists within a
different societal and cultural context,
and the needs of individual family
members must be considered and duly
catered for in a flexible manner.
Wealthy families are also becoming
more global – family members are
migrating, seeking international
education, business and financial
investments are being diversified
globally. This mobility requires flexibility
– what works locally generally requires
adaptability when looking globally.
Accordingly, the family office structure
should be flexible so as to help the
family not only cope, but thrive as it
navigates the many complexities
associated with being multi-generational
and multi-jurisdictional. Moreover a
family office ought to act as a family’s
governance framework to help with
ongoing decision making in the context
of the family’s long-term vision and
goals. It is this governance framework
which supports the preservation and
continuation of the family’s life, goals
and objectives.
Ultimately, flexibility in the operation of
the family office is a key part of helping
a family achieve its aspirations over
time. Just like modern houses are
designed to withstand earthquakes, the
family office must allow some “flex”.
Too rigid and they break.
What impact can flexibility have on
the long-term interests of a HNW
family?
Flexibility helps to ensure that the long-
term interests of a HNW family can
continue to be met, noting that their
more immediate priorities will naturally
change over time, and across genera-
tions.
For instance, how a HNW family
perceives the respective roles of and
interrelationship between their family
fund and family business should define
the way they use and manage those
structures. A flexible family office
structure acts as an enabler in this
regard, adapting as the family’s needs
and priorities change and mirroring the
family’s evolution over time. It protects
the family (via the family fund) and
simultaneously empowers the family to
take calculated risks (via the family
business). Flexibility means that a
family office is always aligned with a
family’s immediate goals without losing
sight of its long-term interests.
How can HNW families ensure they
retain control over their family’s
affairs?
HNW families should be empowered and
supported to retain control over their
family’s affairs while appropriately
engaging different advisors at their
discretion and according to its needs at
any given point in time.
Families should be given the freedom
and ability to build and participate in the
management of their family office,
because one size does not fit all when it
comes to family offices. A bespoke
solution which entails flexibility and
keeps the HNW family at its centre will
ensure they retain an appropriate
degree of control.
What advice can you share on
succession planning? How can
families plan for a smooth transi-
tion?
It is never too early to start planning
and implementing a succession plan –
yet many HNW families choose to defer
it, due to it being “too difficult”.
However, succession reaches far beyond
the mere transfer of wealth; there is
also the transfer of control and
management of the family’s business
and affairs. Importantly, succession sits
within the overarching theme of the
transfer of a family’s legacy from one
generation to the next. Therefore it
ought to be given the priority it
deserves within each family.
Moreover, the greatest impediment
to succession and the perpetuation of
multi-generational wealth is human
nature rather than taxes and legal
systems. So whilst family offices play a
critical role in navigating and managing
the complex networks of tax and legal
systems relevant to a HNW family, I
cannot overemphasise the importance
of advising with empathy, particularly
with respect to succession planning.
Flexibility
is critical
Flexibility in the Family
Office Structure is Key

2. The Investment Network –
marcus evans Summits group
delivers peer-to-peer information
on strategic matters, professional
t r e n d s a n d b r e a k t h r o u g h
innovations.
Please note that the Summit is a
closed business event and the
number of participants strictly
limited.
About the Private Wealth Management APAC Summit 2017
The Private Wealth Management APAC Summit is the premium forum bringing elite
buyers and sellers together. The Summit offers regional SFOs, MFOs, wealth
advisors, and international fund managers and consultants an intimate environment
for a focused discussion of key new drivers shaping wealth preservation and
investment strategy. Taking place at the Conrad Macao, Cotai Central, Macao,
China, 10 - 12 April 2017, the Summit includes presentations on building
sustainable portfolios, tapping into the real estate asset class, securing the family
succession and exploring the new regulatory environment to successfully adapt to
transparent family governance structures.
www.pwmsummit.com
Contact
Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com
For more information please send an email to press@marcusevanscy.com
All rights reserved. The above content may be republished or reproduced. Kindly
inform us by sending an email to press@marcusevanscy.com
About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss
strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to
individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings.
For more information, please visit: www.marcusevans.com
Upcoming Events
APAC Investments Summit - www.apacinvestmentssummit.com
European Pensions & Investments Summit - www.epi-summit.com
Private Wealth Management Summit (North America) - www.privatewealthsummit.com
To view the web version of this interview, please click here:
http://events.marcusevans-events.com/pwmapac2017-sean-cortis