Family offices are reassessing where they manage wealth.
New research from TMF Group suggests political and economic uncertainty is leading wealthy families to consider a broader range of factors when choosing jurisdictions, with Jersey and Guernsey among the locations examined in the report.
The research found that 31% of family offices cited proximity to the markets they invest in as their main reason for choosing a jurisdiction. Political stability and economic stability were each cited by 23%.
TMF Group’s white paper, Building a future-ready family wealth strategy, suggests family offices are increasingly treating geographical diversification as a longer-term approach to managing risk rather than a one-off response to uncertainty.
Rather than leaving established locations altogether, the report found that many are expanding into additional jurisdictions as their operations and investment portfolios grow.
“Families are increasingly making strategic moves to diversify across geographies, protecting themselves against local volatility and accessing new opportunities,” said Tim Houghton (pictured), Global Head of Private Wealth and Family Offices at TMF Group. “But this creates a new challenge: diversification can reduce concentration risk, but it also means families must manage increasingly complex regulatory, reporting and governance requirements across borders.”
The research also highlights differences in the complexity of jurisdictions being considered by family offices. TMF Group’s 2026 Global Business Complexity Index ranks Mexico, Brazil, France and Italy among the most complex jurisdictions, while Hong Kong and Jersey are among the least complex.
The report identifies the UK and Channel Islands as one of four major wealth hubs, alongside the Middle East, Asia Pacific and Latin America.
It said family offices in Jersey, Guernsey and the UK are adapting to changes in regulation and the way wealth structures are managed, with greater attention being paid to governance, digitalisation and the flexibility of structures.
In Jersey and Guernsey, the report points to recent changes to company and trust laws aimed at updating governance and simplifying administrative processes. It also highlights the introduction of the Family Private Investment Fund in Guernsey.
Technology is another area influencing family office decision-making. The research suggests attention is shifting from whether artificial intelligence should be used towards how it can be introduced while addressing privacy, security and governance concerns.
“What’s interesting about AI in family offices right now isn’t really the technology. It’s the generational gap in how people feel about it,” said Houghton. “What we see is an increased concern about how to use AI while ensuring governance, cybersecurity and risk management.”
The report also identifies changes in how family offices are organised, with some considering multifamily arrangements, virtual family offices or outsourcing certain functions.
It found that while interest in ESG considerations has reduced in recent years, they are expected to remain a longer-term consideration as younger family members become more involved in decision-making.
Helen Bougourd, Director of Trust and Corporate Services at TMF Group, said: “The Channel Islands continue to evolve in line with global best practice, while preserving the flexibility and discretion that international families require. The introduction of the Family Private Investment Fund, with its much lighter regulatory burden, clearly demonstrates the commitment to reducing regulatory barriers and enabling innovation.”
