Family office outfits are looking for new jurisdictions in a less certain and secure world.
Recent research shows that family offices are increasing the international footprint of their offices. A September 2024 survey of 300 family office professionals by Ocorian, a specialist global provider of services to high net worth individuals and family offices, financial institutions, asset managers and corporates, found that more than three quarters of the respondents (78%) said they opened more offices in different countries over the past five years. Among the reasons given was the need to move offices in line with diversification in portfolios as well as to access more conducive tax and regulatory frameworks and shield from increased geopolitical risk.
Family members moving abroad was another major prompt, a trend which Ocorian believes will continue as tax policy becomes more complex and less advantageous for the elite in major wealth management strongholds.
Family office operations in Mauritius
Against that backdrop and unprecedented wealth migration, Mauritius is keen to educate a global investor audience about what the Indian Ocean island can offer beyond the holiday brochure and tourism sector. The Mauritius Economic Development Board (EDB), the economic development agency for the Mauritius Government, has embarked for the first time on an international multi-pronged marketing campaign designed to showcase the country’s strength in financial services and wealth management in particular.
To that end, EDB Mauritius will host a webinar in September which will shine a light on the island’s sophisticated offering. Entitled The Emergence of Wealth Management in the Mauritius International Financial Centre (IFC), the webinar will give an overview of the Mauritius IFC, which currently has an estimated $600 billion under management through private banks and family offices and will feature insights of operating in Mauritius from two local wealth management firms, Carrick Wealth and Warwyck Phoenix Securities.
Vinay Guddye, director of financial services at the EDB, says the webinar, on 30 September to be held in-person in Ébène in Mauritius and online, will also be an opportunity to showcase the country’s vibrant, diverse, high-income economy boasting political and social stability that many countries can only dream of – as well as the sophisticated range of products and services and licenses available through the Mauritius International Financial Centre (IFC).
“We have a long history as a platform for foreign direct investment (FDI) into India and we are fairly well known by the wealthy elite in Africa, particularly in South Africa, as a tax-efficient, globally compliant investment jurisdiction to access international markets, but I believe there is not a huge amount of awareness of our offer by major wealth operators and family offices in the UK, Europe and the US and of course we are keen for that to change,” Guddye says.
“Mauritius abides by the highest global standards as set by the OECD, World Bank, the EU, Moody’s, the Financial Actions Task Force (FATF) and others and we have robust and longstanding democratic and legal institutions. Our hybrid legal system combining French civil law and British common law makes Mauritius well-suited to addressing the needs of HNWIs and family offices, which often require cross-jurisdictional legal expertise.”
Apart from the wide range of tax-efficient investment structures available for wealth management offered in Mauritius, EDB Mauritius will also be highlighting the advantages of the island from a point of view of its established financial and professional ecosystem, with an array of banking and fiduciary services as well as its strategic geographical location at the intersection of two continents which boasts some of the most lucrative growth prospects in the 21st century.
“The needs of today’s HNWIs and family offices have evolved as accessing risk-adjusted returns becomes more of a challenge and international tax regulations become more complex,” says Guddye. “Family offices are having to extend their services to encompass tax planning, risk management, estate planning and philanthropy along with traditional wealth management and asset allocation aligned to financial goals.
“In Mauritius we understand the requirements of the modern family office well and have excellent access to professional services including corporate administration, trust and fund administration, tax advisory and other key components needed for the smooth running of a sophisticated single or multiple family office.
“We welcome the opportunity to showcase the strategic advantage of Mauritius as a wealth management hub to a wider audience.”
Register for the webinar The Emergence of Wealth Management in the Mauritius International Financial Centre (IFC) here: https://register.gotowebinar.com/register/6262318395690096469