UBS Family Office Solutions and Agreus have recently released the Family Enterprise Governance Report, a comprehensive study examining governance across the full family enterprise, including the increasingly central role of a Family Office.

In this article, we highlight the findings most relevant to Family Offices and explore what effective governance looks like in practice across structure, people, and investment decision-making. As Family Offices sit at the intersection of wealth, relationships, and long-term vision, Governance is not simply a framework, but the mechanism that enables continuity across generations.

Building a Strong Governance Foundation

Unlike institutional organisations and larger corporations, family enterprises require governance frameworks that are both structured and adaptable. The report highlights that 44% of Family Offices currently serve two generations, while a further 37% serve three or more generations. In a more multigenerational context, governance must evolve alongside the family itself, balancing continuity with flexibility.

The findings reinforce several core principles for building a strong governance foundation:

  • Balancing flexibility and structure: Establishing a clear decision-making mechanism and accountability, while retaining the ability to adapt as family circumstances change.
  • Regular governance reviews: Periodic assessments of governance policies help ensure they remain relevant and aligned with the family’s goals, values, and generational dynamics.
  • Essential governance structures and documentation: Effective frameworks often include a family assembly, family council, advisory board, and trustees, supported by core documents such as a family mission statement, family constitution, and a clear succession plan.

What Does Effective Governance Look Like?

The report assesses governance effectiveness through three core indicators: communication, joint decision-making, and oversight of family decision-makers. Together, these provide a practical lens through which families can evaluate how well their governance structures are functioning in reality, not just on paper.

Despite their importance, formal governance mechanisms remain underutilised. Only 32% of respondents reported having a Family Office council, a body responsible for overseeing the Family Office’s activities, including senior hires, budgets, and the engagement of external advisors. Among families that do have a council in place, the benefits are clear: 62% reported improved communication and 56% cited stronger joint decision-making.

Equally notable is the absence of structured review processes. Just 39% of respondents indicated they have a structured review of the Family Office itself. These reviews, distinct from individual employee performance assessments, focus on how effectively the Family Office is delivering on its mandate and serving the family. An annual review process is a critical, yet often overlooked, mechanism for continuous improvement.

Staffing the Family Office: Building a High-Performing Team

Governance frameworks only deliver value when they are supported by the right people and clearly defined roles. The report reinforces the importance of thoughtful staffing and clear accountability in enabling effective governance.

From Agreus’ perspective, several best practices consistently distinguish high-performing Family Offices:

  • Clear roles and responsibilities: Defining accountability helps avoid duplication, confusion, and operational inefficiencies.
  • Strong external partnerships: Trusted advisors and service providers can complement in-house expertise and provide specialist capabilities.
  • Proactive succession planning: Preparing for leadership transitions reduces operational disruption and preserves institutional knowledge.
  • Strategic outsourcing: Thoughtful decisions around which functions to retain internally versus outsource can improve both efficiency and cost-effectiveness.

Understandably, Family involvement in the Family Office is common, with 63% of respondents employing at least one family member. However, only 21% have a formal employment policy governing family participation. Where such policies do exist, 67% of families report stronger communication and joint decision-making, highlighting the value of clarity and transparency.

Succession planning remains a critical vulnerability. The Family Office Head plays a pivotal role, combining technical expertise with a deep understanding of family dynamics and values. Their departure can often disrupt operations and erode trust. Yet only 33% of respondents reported having a succession plan in place for this role.

Investment Governance: Managing Complexity with Clarity

Investment governance is one of the most complex and consequential areas of Family Office oversight. Many oversee multiple portfolios across asset classes, jurisdictions, tax structures, and liquidity profiles – each with distinct risk and return objectives. In this section, we would like to dive deep into investment governance in a Family Office.

Investment Policy Statements (IPS) sits at the core of an investment governance framework, as highlighted in our previous articles. Despite the importance, only 54% of respondents reported having an IPS in place. Of these, 70% operate under a global IPS, while 30% maintain separate policies for individual investors. While global IPS frameworks offer simplicity, they often fail to reflect the nuanced objectives of each investor where there are multiple beneficiaries involved.

Investment committees (ICs), which is another investment governance mechanism that we have discussed, are more prevalent, with almost 40% of respondents reporting that they do not have one. Furthermore, there is definitely still room for improvement: only 40% have a mission, vision, or values statement, and just 53% have a formal conflict-of-interest policy. The report also notes that many ICs operate in an advisory rather than binding capacity, reflecting the collaborative nature of Family Office decision-making.

Another key finding is that families with an IPS are three times more likely to rate their investment committee as effective. Interestingly, the report also finds that less frequent IC meetings often correlate with greater effectiveness, suggesting that committees focused on oversight, rather than day-to-day market reactions, tend to perform better.

The value of independent, external expertise is another strong theme. 82% of Family Office ICs include non-family professionals, and effectiveness increases significantly when three or more external members are involved. Families that sourced independent investment professionals through executive search firms reported a 66% effectiveness rate for their ICs, demonstrating the value external partners that can add to Family Offices. Yet only a concerning 17% of families have formal qualification criteria for IC members, despite those that do report strong outcomes across communication, preparedness, and joint decision-making.

Compensation structures also matter. Families that compensate family members beyond a nominal level are more likely to rate their governance as effective, suggesting that appropriate incentives can drive accountability and engagement. While only 40% of families include second-generation members on their ICs, more than half of those report improved communication. Onboarding and annual review processes, still widely overlooked, were also found to materially enhance IC effectiveness.

Looking Ahead: Governance as a Strategic Advantage

As Family Offices continue to professionalise and evolve, governance is no longer a “nice to have”, it is a strategic advantage. Strong governance enables Family Offices to attract top-tier talent, manage complexity with confidence, and adapt to the changing expectations of future generations.

The UBS and Agreus Family Enterprise Governance Report offers a far deeper exploration of these themes than can be captured in this article. For those wishing to explore the findings in greater detail, the full report is available on our website.

At Agreus, we work at the intersection of people, governance, and strategy. As a specialist recruitment and consulting firm dedicated exclusively to Family Offices, we support families in building resilient governance frameworks, appointing high-impact leaders, and strengthening investment oversight. Drawing on deep market insight and long-standing relationships, we are proud to act as both a trusted advisor and a thought leader in the global Family Office community.

If you would like to discuss how your Family Office governance and talent compare, or how they can be strengthened for the future, please reach out to the Agreus team for a tailored conversation.