Last week, the Boston Multi Family Office announced the opening of an office in the Dubai International Financial Centre, solidifying the Group's long-term strategy of expansion in the Middle East.

The commercial multi-family office offers a range of trust and corporate services to ultra-high net worth individuals from offices in Malta and the Isle of Man, and now also corporate services from Dubai.

The newly incorporated DIFC entity, Boston Corporate Services, is one of only a handful of global providers able to incorporate DIFC Special Purpose Companies. These legal entities are becoming increasingly popular as vehicles for international investments, corporate financing and the creation of family office structures, due to their significant flexibility.

The Malta Business Weekly interviewed members of the MFO management team

 

MFO stands for 'multi-family office'. What exactly is a multi-family office?

Andrew: A family office organises, structures and manages a family's personal and corporate assets. It keeps those assets secure and working towards the family's goals. A commercial multi-family office, like Boston, is a family office that looks after several families but also offers its services to other families and corporations.

Part of what separates a family office from a corporate service provider, which might offer similar services, is the heritage of having worked for a family or families. That's how Boston started. There are, however, two other key differences. Absolute independence is essential, for a start. This generally rules out banks, legal and accounting firms, investment managers and firms with debt or equity arrangements. An in-depth, even intimate understanding of a family and its different dynamics, politics and concerns is also crucial.

Large organisations find it difficult to deliver such an impartial service, as they are more likely to have their own product portfolio or corporate agenda to push.

 

You are actually a global operation ‒ where else are you based and what does this global reach bring to your operation?

Ann: Yes, we do operate on a global scale with offices in Malta, the Isle of Man and the Dubai International Financial Centre (DIFC. Having a global operation provides Boston with both an onshore EU presence in Malta, as well as an offshore, non-EU presence from the other jurisdictions. We create and manage entities and assets all over the globe, however, these regional hubs give us a particularly strong mix of specialist knowledge that covers the European, Middle Eastern as well as the Asian Markets.

 

How would you describe the normal Boston MFO client?

Kristianne: 'Normal' isn't the right word! Every client has his own story. This is part of why we enjoy what we do so much. As a generalisation, though, we are particularly attractive to entrepreneurs and their families - I believe because we bring an entrepreneurial approach to our work, so there's an affinity there.

 

Is your target local business or are you also looking to attract international clients to Malta?

Ann: We have a number of Maltese clients and that list is growing, but our main focus is in bringing more global capital to the Maltese shores. Malta is the ideal EU jurisdiction at the moment in a number of different sectors, namely gaming, commercial aviation, citizenship by investment, commercial and private yachting, and more. We don't see that changing any time soon, so we are investing heavily in promoting our home overseas.

 

What is it about Malta's trust regulations that make it such an attractive location for clients?

Andrew: Firstly, Malta is one of the few jurisdictions that caters for both trusts and foundations. It may not be common knowledge to an individual who does not work within the industry, but trusts are not generally found in civil law countries such as Malta. The fact that Malta has a civil law, however, actually allows a faster set-up process and the creation of more customised solutions, allowing for greater flexibility.

Prior to 2005, Maltese residents and companies were not permitted to use local trusts. Once they were made available to the local market, however, the concept of Malta being solely an offshore jurisdiction was eliminated. Malta was at that stage converted into an onshore jurisdiction with offshore benefits, encompassing the best of both worlds. As a business location, Malta further provides a high quality professional service and a competitive tax regime overseen by a European standard of regulation.

The flexibility of the Maltese regulation on trusts provides several benefits, in that it recognises foreign trusts as well as the use of private trusts; it allows for the set-up of dynamic and customised solutions and this is available to individuals at a low set-up and administration cost.

 

Andrew, you have just taken over as MD. What is your background and what are your plans for growing the business?

Andrew: I am a trust lawyer by training and I have spent much of my career with Bank of Valetta, when it was the go-to trustee in Malta. I see enormous potential in Malta as a jurisdiction for establishing onshore EU trust structures, yet there is a gap in the market for a reliable trustee now that the banks have moved out of this space. The team at Boston, absolutely, has the skills and the capacity to fill that need in the market and I will be pursuing that opportunity aggressively.

 

There is huge market uncertainty at the moment, fed by questions about the future of the EU and the euro, unrest in the Middle East and questions about the direction of America's foreign policy. What advice are you giving clients looking to secure their family's wealth in the long-term?

Kristianne: I believe the proper response to the threat of political change and market volatility is to select jurisdictions that are proactive and can adapt rapidly. By this I mean the smaller international financial centres that have built their offering around legislative agility and specialised service economies. These economies are less prone to large swings in policy, but use rapid incremental changes in legislation enabled by their small size to ensure they remain consistently legitimate and pro-business. That's what wealth-holders need to help them survive volatility - flexible, secure jurisdictions - and I believe Malta is absolutely at the top of that list.