Governance is the top challenge for family offices, cited by 86% of respondents, according to a new global research by Ocorian.

The research reveals that family offices are significantly stepping up their focus on governance. In a study conducted amongst more than 300 family office professionals managing a combined $155bn in assets, 86% ranked “having the right governance in place” as their biggest challenge, as regulatory demands and multi-jurisdictional complexities continue to grow.

As family offices become more professionalised, the emphasis on governance has intensified, with a clear majority identifying it as a key concern. This focus is reflective of the broader industry trend toward enhanced scrutiny and regulatory oversight, as family offices — many of which operate across different jurisdictions — face diverse and increasingly stringent compliance obligations.

Michael Harman, commercial director – private client at Ocorian, said: “Governance has become a principal focus for family offices, and it is something that consistently comes up in conversations with my clients. They are increasingly reassured when a service provider, like Ocorian, connects them with leading regulatory and compliance professionals to guide them through this evolving landscape. Our strategic relationship with Bovill Newgate allows us to offer exactly that, helping family offices ensure their governance frameworks are both comprehensive and compliant.”

In response to the growing complexity of the regulatory environment, family offices are seeking independent, expert guidance to ensure compliance across multiple jurisdictions. Bovill Newgate, a regulatory consultancy and an Ocorian company, plays a critical role in providing such support.

Cilla Torode, head of Bovill Newgate Guernsey, added: “The findings of this study align closely with the challenges we’re seeing across the broader financial services sector. Whether it's family offices or alternative fund managers, governance remains a central concern. In fact in a study we commissioned earlier this year in partnership with Ocorian, two thirds (65%) of alternative fund managers admit being subject to governance related fines or sanctions during the last two years and nine in ten (90%) see their organisation’s focus on governance increasing over the next 24 months.

“With regulatory frameworks continuing to evolve, particularly for family offices operating across different jurisdictions, the need for robust governance practices has never been more pressing. At Bovill Newgate, we recommend a three lines of defence approach to help family office professionals protect their businesses. This involves creating strong frontline processes, continuous monitoring, and ensuring rigorous independent audits of governance frameworks to mitigate risks effectively.”

Ocorian’s three lines of defence approach to tackle risk and compliance challenges:
· Line one: create clear and robust frontline processes and procedures, supplementing this with both online and face to face training programmes for staff.
· Line two: build and empower a comprehensive compliance oversight function which monitors and assesses the processes and procedures, as well as advising and supporting staff and senior managers to comply with the firm's obligations.
· Line three: seek review and challenge of the firms AML framework via annual independent audits.

Bovill-Newgate is an Ocorian company and specialist financial services regulatory consultancy with a global offering across the UK, the Channel Islands, Singapore, Hong Kong, Mauritius, and the Americas.