Robert Jones, Director, FCL Advisory Onsite presentation for Private Wealth Management APAC Summit 2018

1. Robert F. Jones
Marcus Evans
PWM APAC Summit
Macau Conrad Hotel
16 April 2018

2. |1 My background
How I got into the FO space

3. |2 Private Banks:
-personal guarantees
-structured products
-stock and bond commissions
-fx commissions
-60/40 stocks/bonds

4. |3 Family Offices:
-leakage: taxes, fees, bid/ask, costs
-staffing
-institutional vs private banks [transparency and simplicity is the cost of entry]
-global custody [sovereign / bank risk]
-administrator’s role
-leverage cost, ring fencing
-books:
Pioneering Portfolio Management by David Swensen and Wealth by Stuart Lucas

5. |4 -Drilling down a bit more:
-Equity/Bond commissions (what to strive for)
-FX Commissions (adv., disc., airports/tourist sites, funds)
-Internet (Boom/IB) & On-Line Trading (BTIG/Fund Managers)/fat-
finger errors
-Technical vs fundamental investing

6. |5
Family Office Risk Audit
Just like body check/diagnostics to determine health of
patient, before recommending course of improvement.
Controls: Who can do what? Checks and balances over
moving money, personal guarantees, placing orders, making
payments, borrowing, executing agreements, accessing
confidential data, reconciling accounts, etc.
Spotlight: What is reported to whom and when? Reporting
framework and frequency
Direction: Who runs the ship and what are the
parameters? Board meetings, strategy decisions, change of
direction, risk parameters, etc.

7. |6
Family Office Risk Audit (continued)
Organization: What is where? Documents, files,
agreements, etc.
HR: Who reports to whom? Do current reporting lines make
sense, are there significant holes in the organization chart,
are any major tasks neglected, etc.
Financial risks: What’s the plan? Investment plan,
counterparty and market and liquidity risk parameters,
sectors or companies or products (derivatives? structured
products?) that must be avoided, etc.
Family and Charity: Are these a factor? What is the
relationship between the business and the family, and
philanthropy? Generational planning, philanthropic
relationship with the business, education, etc.

8. |7
Family Office Risk Audit (continued)
Bedrock of the building: What is the legal structure? What
legal entities are used and how
Taxation: What’s the defense? Defensive tax strategies, tax
planning, passports, Fatca, common reporting standards, etc.
Service: Who provides a service and why? Lawyers,
accountants, trustees, administrators, compliance, banks,
brokers, etc.
Custody: Who holds the assets and why? Jurisdictions,
safety, etc.
Budgeting: What are the numbers? Budgeting, projecting
cash flows, are costs reasonable, etc.

9. |8
Family Office Risk Audit (continued)
IT: What’s the infrastructure? Network, server, email,
firewall, website, oversight, changes, etc.
End Goal: Entrepreneurial, flexible, proper, and robust

10. |9 Robert Jones
FCL Advisory Limited
Unit 701A, 7/F, Cheong Tai Commercial Building
60-66 Wing Lok Street, Sheung Wan, Hong Kong
Telephone: (852) 2591-5923; (852) 9316-7564
E-Mail : robjones@fcladvisory.com
Web : www.fcladvisory.com