The Case for the Standards
In the wake of the Madoff scandal and widespread mismanagement among financial institutions, wealth holders and their families worldwide are demanding more control and oversight of their wealth management.
 
To implement more effective structure and process, Don Trone, and Charles Lowenhaupt, with support from Campden Media, have developed a set of Standards that are based on the Principles of Private Wealth Management, which were written by Charles Lowenhaupt. The Standards are designed to achieve the following:
  • Help restore trust and confidence between wealth holders and advisors
  • Provide the basis for prudent practices and procedures which can be independently assessed across multiple jurisdictions and countries
  • Guide consistent decision-making and communication across all levels, including staff, money managers, and other service providers
  • Benchmark current status, prioritise work, and measure progress
  • Uncover procedural and behavioral risks of decision-makers or malfeasance
  • Allow wealth holders freedom from the burdens of wealth

Origin of the Standards
The Standards’ initiative began in February 2009 after Charles Lowenhaupt and the Lowenhaupt Global Advisors’ Council of Global Advisors drafted and approved the Principles of Private Wealth Management. The Principles called for the following:
  •  Separation of custody of assets and investment management
  •  Complete transparency of advisors’ fees
  •  Full disclosure requirements to prevent conflicts of interest
  •  Standards for compensation of family office executives
  •  Discouragement of investment vehicles without transparency or liquidity
  •  Insistence on customised investment portfolios meeting the needs of the owner
  •  Ensuring that wealth holders serving as trustees or investment committee   members are aware of their fiduciary duties 
  •  An investment strategy that can be readily understood by wealth holders
 
 
The role of the Standards Director
Global wealth management Standards include a provision for creating a "Standards Director." This person is responsible for ensuring that every wealth holder - and its individual members - receives advice and service consistent with the Standards. The Standards Director can engage assistance, turn to auditors and may ultimately be able to secure certification.
 
Developing clear universal Standards is the next step in the evolution of wealth management. Standards will help families and family members get back to leading their lives and enjoying freedom from the burdens of wealth.

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