Blood ties: Family members of the ultra-rich beat accountants in giving financial advice

Whom do Asia’s wealthiest trust?

Asia is experiencing unprecedented growth, and Asian businesses are riding this rising tide of wealth. But it seems that high net-worth Asian business owners still prefer to run to their family members for business counsel, sidelining lawyers, accountants, and private bankers in the process.

According to Standard Chartered and Campden Wealth Research’s report, most high net-worth individuals in Asia prefer to follow financial advice from their family members, while accountants come in second and advice from lawyers come in third.

Next in line are private bank advisors, independent asset managers, investment bankers, family offices and commercial bankers.

“Total trust, some participants explained, is reserved only for those individuals closest to the business--namely, family and long-time colleagues,” the report noted.

Here’s more from the report:

The role of family businesses in the development of the private sector across Asia is equally important. Family businesses account for 32% of the total stock market capitalisation of the regionand 34% of its gdp.

“[T]his is a crucial stage of the business and family members are more likely than external advisors to care about and nurture the business. Our commercial profts put the food on our table and provide for our wants and needs, so we are [invested] in sustaining it. . .” said one respondent.

Family businesses are also important players in growing international and inter-regional trade, and in assisting regional economic development through exports. On average, international sales represent up to 36%per cent of the total sales for family businesses in Asia, compared to 8 per cent in North America.