Episode 10 of 10
Reviewing and Switching Your Multifamily Office
A multifamily office should earn its place every year. Review the relationship against your family's needs, document what is working, and switch in an orderly way when the fit no longer holds.
Family Office Service Providers & Partners - What to Know
Set a regular review date
Do not wait for a crisis. Put a formal review on the family calendar at least once a year, with shorter check ins after a major sale, inheritance, move, business change, or family governance change. Invite the family members who set priorities, plus the office relationship lead. Keep the meeting focused on outcomes and service quality.
Start with the original engagement letter, service schedule, fee schedule, investment policy statement, and reporting sample. Compare those documents with what the office actually delivers. List each promised service, the person responsible, the frequency, and the evidence that the work was completed. Include investment reporting, consolidated statements, bill payment, tax coordination, insurance reviews, estate planning coordination, philanthropy, education, and family meetings where applicable.
Use the questions section to prepare a short interview guide. The goal is a review based on facts, not a sales presentation.
Measure fit, not just returns
Investment performance matters, but it is only one part of the relationship. Review results against the agreed benchmark, risk level, liquidity needs, and time period. Ask whether the portfolio still matches the family's policy and whether private investments are reported with clear valuations and cash flow records. Avoid judging a single year in isolation.
Measure the office on response times, accuracy, transparency, coordination, and judgment. Did the team catch important deadlines? Did specialists communicate with one another? Were conflicts disclosed? Did the family receive information in a form that decision makers could understand?
Ask for a written explanation of material changes in personnel, ownership, fees, custodians, technology, or outside service providers. Read the firm's current Form ADV and disclosures in the SEC's Investment Adviser Public Disclosure database. Form ADV filings are available to the public through IAPD. SEC IAPD information.
The ultra wealthy need to say no to almost everything, we talked about before, and you have to get better at saying no every year.
Build a switching case before you act
Switching makes sense when the office cannot meet an important need, repeatedly misses agreed standards, lacks needed expertise, becomes too expensive for the value delivered, or no longer fits the family's structure. Write the reasons in plain language. Separate one time problems from patterns. Give the current office a chance to respond, unless trust or safety concerns require immediate action.
Create a transition brief for a prospective office. Include the family's objectives, entities, jurisdictions, reporting needs, decision rights, liquidity needs, private holdings, key deadlines, and service gaps. Ask each candidate how it would handle the first 90 days, who would do the work, what information it needs, and how fees would change. Review potential firms through firms, locations, and the data section, then verify regulatory records independently.
For professionals who are brokers or investment advisers, use FINRA BrokerCheck and the SEC IAPD before sharing sensitive information or authorizing a transfer. Investor.gov explains that BrokerCheck provides background information on brokerage firms and brokers. Investor.gov BrokerCheck guide.
Plan the transition in stages
Read the termination clause, notice period, fee obligations, custody terms, data rights, and record delivery requirements in the current agreement. Have the family’s attorney review documents where needed. Coordinate the timing with custodians, banks, lenders, insurers, tax professionals, and investment managers.
Request a complete data package before the relationship ends. Include account statements, transaction history, cost basis, capital account records, entity documents, tax files, policy schedules, passwords or access transfer instructions, investment agreements, contact lists, and open action items. Use a secure transfer method and maintain an access log.
Decide what will move, what will stay, and who approves each step. Some private investments, insurance policies, lending relationships, or entity services may remain with existing providers. Set a cutover date, a person responsible for each workstream, and a weekly transition meeting. Keep cash management and critical payments covered throughout the change.
After the new office starts, run a 30, 60, and 90 day review. Confirm that data reconciles, reports arrive on schedule, permissions work, and open items have owners. Update the family office mandate and governance documents once the new arrangement is stable.
It's a word document that's planning. So your whole family and your top service providers are all on the same page. And they know the wealth creation story, and they know what to shield you from and what to focus on. Every single investor should have that, whether you're worth 5 million or 500 million.
Keep the relationship reviewable
A good review process makes switching less disruptive because the family keeps current records and clear standards. Store the mandate, service calendar, fee schedule, meeting notes, and performance reports in one controlled location. Revisit the documents after major family or business events.
Use the learn guides for supporting education, the tools calculators for planning questions, and the glossary when terms need clarification. Families evaluating providers can also review videos and learn how to start a family office. Firms and advisers may claim a listing so families can compare published information with their own due diligence. Treat a directory listing as a starting point for independent diligence.
Checklist
- Compare the signed mandate, fees, service calendar, and actual delivery. Record gaps, patterns, and unresolved issues.
- Verify prospective advisers and brokers through SEC IAPD and FINRA BrokerCheck, then request a written 90 day transition plan.
- Secure records, assign transition owners, set a cutover date, and review the new arrangement at 30, 60, and 90 days.
Takeaway
Review the office against documented promises and family needs every year. If the fit has changed, switch through a written, staged transition that protects records, cash flow, and decision authority.