An advisory board gives a family office outside judgment without handing over control. Members advise; the family or its investment committee still decides.
Advisory board or investment committee
An investment committee approves or rejects specific investments under written rules. An advisory board is looser. It brings experience the family lacks, such as an operator from an industry the family invests in, a tax specialist or a seasoned family office executive. Many offices start with an informal board and formalize it as the office grows.
Practical tips
- Write down what the board is for and what it does not decide.
- Pick members for skills the family does not have, not for friendship.
- Agree how conflicts of interest are disclosed and handled.
- Meet on a schedule and keep short notes of the advice given.
The full chapter is Part 11: Investment Committees and Advisory Boards. For the wider rules, see how a centimillionaire family office should be governed.
Educational only. Nothing on this site is investment, tax, legal, accounting or other professional advice, or a recommendation on any security, manager, structure or allocation. Speak with qualified professionals before acting.