Your questions answered.
Are the Standards duplicative of regulations that already exist for investment professionals?
No. Securities regulations often lack the details of a prudent investment process. The purpose of the Standards is to provide those details in a framework that has been specifically structured for wealth holders.
Will the Standards stifle the use of exotic investment strategies?
Yes. The Standards are not going to be suitable for every wealth holder. The Standards can be adopted selectively if a wealth holder wants to use investment strategies that are not compliant with one or more of the Standards.
How does The Institute make money to support its programmes?
The Institute will license the Standards to organisations seeking to ensure better process and discipline in private wealth management.
When will the Standards be completed?
A draft copy of the Standards has been prepared and is now being circulated for comment. The Institute anticipates seeking public comment for the remainder of 2009. After that, the comment period will end and the final Standards will be available.
Why was The Institute launched?
In the aftermath of the Madoff, Stanford and similar scandals and the worldwide financial crisis of 2008, many families of substantial wealth found themselves injured and shaken and realised they needed to impose greater process and discipline in the management of their wealth.
To address that need, Charles Lowenhaupt, CEO of Lowenhaupt Global Advisors, together with members of the Lowenhaupt Global Advisors Global Council, authored the Principles of Private Wealth Management in January 2009. Shortly thereafter, Charles Lowenhaupt and Don Trone, one of the world’s most respected experts on fiduciary responsibility and Standards development, began collaborating and Don Trone began drafting the Standards.