Held recently, the event (‘Strategies for a World in Transition’) of which Crestbridge Family Office Services was a sponsor, was attended by Heather Tibbo, CEO, Daniel Channing, Director and John Harris, Chair.

Across the keynote speakers and panel sessions, key issues highlighted at the event included:

• The importance of working with partners and advisers to pre-empt imminent global risks, including AI, market instability, political and social volatility and climate change
• The growing appetite to integrate legacy planning and sustainability into wealth strategies
• Legacy for families is as much about the transfer of values as it is about the transfer of wealth
• The appeal of stable jurisdictions is set to grow even further in a world that is increasingly volatile

Commenting on the event, Heather Tibbo said:

“The clear message was that political, regulatory and legislative change is prompting families to call on the expertise of their advisers and partners more and more as they try to navigate an unknown future. Being on the front foot is really important, and we’re absolutely seeing that play out amongst forward-thinking families who are focused on robust, innovative planning and want to ensure an impactful legacy.”

Daniel Channing added:

“Families are alive to the risks the current environment presents – what these families do however recognise is that a common purpose and shared values can provide a stable core around which they can find stability. To truly harness and implement the benefit of that purpose and value families recognise the need for specialist advice and sophisticated governance. These families are in a world that provides significant challenges, but that also offers up much opportunity too. With the support of external experts and with a solid foundation and structuring options through jurisdictions like Jersey, families are being positive in their outlook, setting themselves up well for future wealth transfer and investment.”

In essence, a VFO is a wide group of consultants servicing the assets and supporting the specialist needs of families from afar, with responsibilities usually divided amongst the group and clearly delineated, as opposed to the more traditional, physical family office with salaried staff.

A number of factors are driving this trend, Mr Channing explained.

In particular, multigenerational family dynamics, the shifting needs of the next generation and a greater diversity of focus are making family interests more complex – in terms of family members, ‘branches’ and geographies, as well as investment interests, businesses and asset classes.

This broadening span is, Mr Channing said, a key driver to family offices having to scale in both size, expertise and jurisdictional reach, leading to a greater propensity to turn to trusted external partners to support those complex areas.

In addition, the uptake of the VFO model is also being driven by the increasingly challenging landscape of international regulation and requirements around, for instance, reporting relating to more diverse investment strategies or beneficial ownership disclosure.

These factors are ‘the stick’ – all demanding more of families and precipitating the demand for specialist expertise; expertise that need not necessarily be ‘on the ground’ locally but could be tapped into wherever it is in the world.

In addition, the continued progression of communications technology has meant that the transition to remote and hybrid working practices has been relatively smooth. This is ‘the carrot’ – the enabler that has meant the shift to accessing the best expertise, wherever it is, is absolutely possible.

“The VFO has become a very viable option for families at all levels,” Mr Channing said.

“Getting the very best expertise and support is what families ultimately want – and actually it can be far more accessible, more flexible and more cost effective to be able to tap into that expertise remotely or virtually.”

Mr Channing explained that a key benefit of a VFO was its flexibility.

Rather than a fixed office with a static staff, a VFO functions as a group of advisors and consultants orbiting the family, and ‘departments’ can be added or removed with greater ease than traditional recruiting.

They enable families to respond to changes in the market or indeed the family itself with speed and without incurring the fixed, longer-term costs of salaries and rent. They also allow families to access a wider range of expertise and experience than traditional FOs.

“If a family, for instance, wanted to move assets to a new jurisdiction,” explained Mr Channing, “it can be much faster, easier and potentially cheaper to consult with a remote team on a temporary basis than to set up a physical office and hire salaried employees.”

VFOs can also be very well equipped to deal with generational change in the family. As wealth cascades down and disperses through inheritance to multiple family members, more advisors can be consulted with this in mind, as and when necessary – for instance in new markets where a family has little existing experience or is not as comfortable.

“Family offices are having to become more sophisticated quite quickly,” Mr Channing said.

“A virtual structure can allow them to cope with that rapid change much better than a traditional approach, allowing them to get access to the very best financial advice, remain agile, and enabling them to meet the changing needs of the market.”

Such a fundamental shift in operations is not without its challenges, Mr Channing warned.

While a VFO can be very nimble, the nature of the ‘office’ means that direct communication between advisors, who may have entirely different responsibilities, can be difficult.

“It’s important to be mindful that VFOs have the potential to create ‘silos’, where consultants do not interact, and this can lead to opportunities slipping through the cracks or a lack of efficiency,” Mr Channing advised.

“Clear and effective leadership is necessary to prevent mistakes and losses due to this lack of communication.”

In addition, while VFOs are very flexible in addressing logistical and regulatory challenges, they can struggle when it comes to technology, Mr Channing warned.

He explained that they can be less secure than traditional FOs, who will run their own servers and house their own data, and because the consultants all work for different firms, they may prove to be slower than more centralised operations in adopting, for example, the potential benefits of AI systems.

“While there are challenges in the operation of VFOs, most can be solved with a focus on strong leadership, regular and easy access to the family, and a clear focus on the mandate – while assigning an experienced, trusted service provider that can act as a central point of contact and liaison for all parties can be an effective approach,” Mr Channing said.

“If the founders remain close to the operation and ensure a high level of cooperation between the advisors involved,” added Mr Channing, “then there is no reason why the VFO can’t be an incredibly exciting opportunity for families to grow their wealth and secure their holdings for years to come.”

The team succeeded in raising over £5,000 in total for Jersey Cancer Relief. The climbs included Scafell Pike in England, Scotland’s Ben Nevis, and Snowdon in Wales, covering a total walking distance of 26 miles and over 3,000 metres of ascent. And all within the space of 24 hours on 4^th and 5^th August.

The challenge was particularly personal for Andrea Sturges, Manager at Crestbridge Family Office Services, who was herself diagnosed with breast cancer, and received significant practical, logistical, and financial support from Jersey Cancer Relief.

The other team members taking on the challenge with Andrea were Chloë Blampied, Melloney Bond, Chris Cameron, Daniel Cavey, Hannah Le Claire, and Jack Rondel.

Founded in 1968, Jersey Cancer Relief was incorporated as a Jersey charity in 1973 to support cancer patients and their families who were finding it difficult to cope financially because of their illness. The charity offers broad financial assistance where there is a need to Jersey residents affected by cancer in its many forms, from doctor’s fees, supplements, and dressings, to travel to the UK, nursing care, medical equipment, and even loan mobile phones for patients needing to travel to the UK.

Commenting on the fundraising initiative, Andrea said:

“I was 29 when I received my diagnosis and the support and compassion I received from Jersey Cancer Relief was massive – in particular because my son was so young. The practical and logistical help the team gave me during a really difficult time when I had to spend significant periods in the UK for treatment was invaluable. This is my way of trying to give back to a local charity that does a tremendous job – and to complete this challenge with the support of my colleagues makes it even more special.”

Anne Pryke, Chair, Jersey Cancer Relief added:

“There is always so much to think about when someone is diagnosed and receiving treatment for cancer and often it’s the practical and financial implications of the illness that can weigh most heavily on people – particularly where there are young families and frequent trips to the UK involved.

“Jersey Cancer Relief exists to provide support in those areas, so that people can focus on themselves and their families when they need to most, and not the financial burden. We’re really grateful to the team at Crestbridge for their efforts to help raise such a good sum to support our work in the local community.”

Further information about Jersey Cancer Relief can be found here.

Jersey-based Danielle is included in the ePrivateClient NextGen Leaders List, published this week. The list recognises and celebrates rising stars from across the private client landscape in the UK and Crown Dependencies. In compiling the list, the publication considered a number of factors, including individual achievements over the past year, and career progression.

Danielle was also featured in the publication’s Channel Islands NextGen Leaders List earlier this year.

Danielle has 13 years’ multi-jurisdictional experience in the finance industry. She provides oversight to a large team administering structures that hold investment portfolios, financing vehicles and commercial and residential real estate for high profile international families, many of thern require Islamic Finance expertise.

Danielle holds the ICSA Diploma in Offshore Finance and Administration, the CISI Islamic Finance Qualification, the STEP Advising Family Businesses and Family Business Governance Qualification, the CISI Sustainable and Responsible Investment Certificate and is working towards the TGCI Diploma in ESG.

The latest recognition maintains a successful twelve months for Danielle, who was also named Winner of the “Rising Star Under 40” Award at the 2022 WealthBriefing European Awards and was a Gold Winner of the 2022 Citywealth Powerwomen Awards in the “Woman of the Year – Rising Star” category.

Paul Hunter, Managing Director of Crestbridge Family Office Services, which is celebrating its 10^th anniversary this year, said: “Crestbridge Family Office Services can demonstrate a strong track record in both attracting and supporting talent, and Danielle is a perfect reflection of that.  Although she is recognised as a NextGen Leader, she is already supporting highly complex family office requirements and, as a senior member of our team, is contributing to our shared success and driving our growth strategy. I’m delighted for Danielle, whose approach and commitment mirror our collective values.”

In her new role, Karen will work closely with the leadership team and Board of Directors at Crestbridge FOS, which marks its tenth anniversary this year, on financial strategy.  Overseeing the operation of Crestbridge FOS’ internal finance team, Karen will be responsible for all aspects of financial reporting, budgeting and forecasting. Karen will also oversee the client reporting function and ensure the successful delivery of clients’ accounting and tax reporting requirements.

With more than 25 years’ accounting experience, 15 of which have been within the offshore financial services industry in Jersey, primarily working on private client structures, Karen is a qualified Chartered Accountant.

Heather Tibbo, CEO, Crestbridge Family Office Services, said:

“ Karen will play a key role in helping to drive our growth strategy as we continue to cement Crestbridge Family Office Services as a leading independent and privately owned player in the market in what is our tenth anniversary year.

“Her commercial approach and multijurisdictional experience together with her leadership capabilities will be pivotal not only in ensuring the ongoing delivery of high-quality accounting and reporting services to clients but also in supporting our progressive journey as a business going forward.”

Organised by Jersey Finance, the roundtable involved an invited group of London and Jersey-based intermediaries to discuss and debate what ‘responsible stewardship of wealth’ means to them and their clients.

Speaking at the event, Daniel highlighted that ‘purpose’ was increasingly a key word when considering options for families who are looking at how they manage their wealth with a conscience, appreciating that ‘wealth’ goes beyond financial gain.

“It’s important to note, though, that every family has their own unique situation,” added Daniel. “Global economic instability, inflation and the current high interest rate environment is also creating uncertainty and complications in making these decisions.”

Other participants agreed that integrating purpose into family strategies brings with it a need to explore concepts of social capital and to ensure that decisions taken tie in with a client’s values and often diverse viewpoints. Participants stressed that advisers have a key duty here in helping families recognise what is important and support them in applying a more conscious approach in adhering to the family’s values in line with their governance framework.

Beyond purpose, discussions at the roundtable also focused on educating the younger generation by cutting through jargon and obstructive language in order to safeguard future wealth transfer, while participants were also keen to emphasise the importance of good, open conversations with clients, and establishing a process for reviewing structures carefully and frequently to ensure they remain fit for purpose in a rapidly evolving world.

Reflecting on the roundtable, Daniel said:

“This was a really lively discussion that served to highlight some of the key issues for the family advisory community at the moment, when it comes to responsible stewardship.

“Certainly families want and need to address their interpretation of ‘purpose’ carefully – and that is achieved through good communication between advisers and clients, having strong governance frameworks in place, and focusing on nextgen education, as they prepare to take over the reins to manage their families’ wealth.”

Crestbridge Family Office Services, which is not part of this transaction, will continue to operate independently and provide its private client, trust and fiduciary services whilst remaining privately owned. It will continue to support its clients and their advisers with the same commitment and dedication they have experienced over the last ten years.

Having joined Crestbridge ten years ago to establish Family Office Services, Heather Tibbo now takes the reins as Chief Executive Officer with Paul Hunter as Managing Director. They will continue to be supported by the current team of Family Office Services professionals ensuring continuity of services and relationships.

Chief Executive, Heather Tibbo, said:

“Over the last ten years, Crestbridge Family Office Services has demonstrated a clear focus on its specialism for families and ultra-high net-worth clients and advisers. I am excited about the future for our business, our people, and the continuing opportunity to grow and develop our array of services, delivering excellence to our clients and advisers whose interests I firmly believe are best served by our remaining independent.”

The mid-year promotions, which took effect from 1 July 2023, include Clare Stotesbury, who becomes an Associate Director.

In addition, Charlotte Williamson has been made a Senior Manager whilst Melloney Bond has been promoted to Manager, and both Hannah Le Claire and Joel Lucas-Villar become Senior Administrators.

All five have been promoted in recognition of their achievements, expertise and contribution to the business.

Congratulating those promoted, Heather Tibbo, Group Head of Crestbridge Family Office Services, said:

“Client service remains front and centre of our proposition and delivering that means nurturing a high quality, driven and highly knowledgeable team. With that in mind, I’m delighted that five of our professionals have received promotions in recognition of the contribution they have made to the business over the past year, and their ongoing commitment to their own professional development.”

Sophie won Gold in the ‘Business Development Manager of the Year’ category, with the accolades being presented at an Awards ceremony held in London this week (20th June).

Now in their eighth year, the Awards recognise the best brands across the private wealth landscape and champion the individuals and teams driving positive change and demonstrating best practice across the marketing, business development, public relations and communications sectors.

Sophie, who joined Crestbridge in January this year, has built a career as a business development specialist over the past ten years, working across the trust and company service provider sector in Jersey to support strategic business goals. As well as working with colleagues to facilitate the onboarding of new clients, Sophie also supports the team’s marketing efforts and is a champion for the business’ client relationship-driven approach. She holds the STEP Diploma in International Trust Management and the ICA International Diploma in Anti Money Laundering.

Commenting on Sophie’s success, Daniel Channing, Director, Crestbridge Family Office Services, said: “In a highly competitive market, it’s imperative that we effectively communicate how we differentiate ourselves.  I’m delighted for Sophie – she has contributed to our business development strategy this year and her efforts, along with those of our wider marketing and business development team, have proved pivotal in cementing our positive reputation.”