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| Family Office |
Our Financial Factotum
Constance Gustke
02/02/2004
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Those who decide to foreswear family offices altogether may choose to tap another professional—an accountant or lawyer, for example—as a CFO. However, these professionals often lack experience dealing with family dynamics, something experienced family office personnel typically have. However, if they have our confidence, this may not be an insurmountable problem. "Chemistry is very important," says White. "There has to be a tremendous amount of trust, because they’re going to rely on you to pick the right attorneys and accountants to satisfy their goals."
 Hiring our own family CFO typically takes more work than hiring a multifamily office CFO. Lawyers recommend cementing the relationship by drawing up a confidentiality agreement with termination provisions. Some families with a large family office even get professional liability insurance that protects them against the risk of the CFO making serious errors,
such as choosing an investment firm without adequate due diligence.
The chances of us finding the perfect Renaissance man or woman to act as our family CFO are slight. It takes time and a great deal of research to find the right candidate. "You’re talking about a very special person," says Claire Kluever, senior relationship officer at FOX. "They have to be strong and in control." They will almost certainly also be in great demand.
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