More wealthy families are looking at philanthropy as a way to create a lasting legacy, position themselves as ‘social entrepreneurs’ and reflect their family values, according to speakers in a panel session at a major STEP event moderated by Jersey Finance CEO Joe Moynihan recently.
Jersey Finance was a sponsor of the major STEP Global congress event, which took place in London on 7th – 8th of July. Attracting delegates from more than 40 countries around the world, the event covered a broad range of topical issues for private client advisers, from the impact of geopolitical unrest in Europe and global mobility of high-net-worth individuals to the application of digital tools and the current economic environment.
The session moderated by Joe focussed on the evolution of philanthropy, with speakers Russell Waite, Founder of Affinity Private Wealth, Penny Chapman, Partner at BDB Pitmans and Suzanne Reisman, Founder of Law Offices of Suzanne Reisman, debating the philanthropic endeavours of the next generation of wealth-holders, and how sustainable finance will impact the future of private wealth management.
In particular, panellists highlighted the fallout of major global events, including the pandemic, climate change and conflict in Europe, as giving renewed impetus to the desire amongst families to enter the philanthropic space to create a long-term legacy and a platform to reflect their personal values as a family.
However, the need for families to be able to tap into specific expertise and for trustees to adapt was also emphasised, with panellists pointing to the need for education, training and skills to be high on the agenda, in particular when it comes to data collection and analysis and understanding around potential conflicts with fiduciary duties.
This is particularly the case when it comes to the NextGen, who are taking more of an interest in philanthropic decisions and expect credible, authentic guidance from their advisers.
Meanwhile, despite growth in interest in philanthropy, there are clear headwinds in the space this year, according to panellists. The economic environment, including the impact of interest rates and inflation on returns, will inform family decisions, whilst ongoing changes in the regulatory environment also pose potential challenges.
Commenting on the event, Joe Moynihan said: “It’s clear that there is growing demand for sophisticated support amongst wealthy families when it comes to philanthropy. This is not an emerging trend anymore; it is a live issue that families need support with. Our session pointed to the idea that families want to see themselves as ‘social
entrepreneurs’ with a view to addressing real world problems and social inequalities. The private client advisory community needs to be capable of responding to that.
“That applies equally to jurisdictional partners for families, and this STEP event, which represented a coming together of the biggest names in private client practice worldwide, provided an excellent platform to show that Jersey is aligned with cutting edge thinking in this area, in particular in terms of the implementation of our sustainable finance strategy launched last year.”