PwC Encourages Family Offices to Operate in Low-Corruption Countries

A family office is a private company that manages the assets of high-net-worth individuals or families.

These companies typically act as financial planners, tax advisors, and investment managers for their clients.

Consulting firm PricewaterhouseCoopers (PwC) states that family offices need to consider several factors when choosing a country for their operations.

One important factor, according to PwC, is a country's reputation, measured by its corruption index.

"The relationship between the reputation of wealthy families and the location of their family office can be a sensitive issue," said the PwC team in the *PwC Family Office Location Guide*.

"If a location is deemed not to meet high standards, for example, if it has a poor corruption ranking, there may be a stigma attached to the family office there," they said.

PwC recommends that family offices choose operational locations in countries with a Corruption Perceptions Index (CPI) score above 60.

The CPI is a global corruption index with a scoring system on a scale of 0-100. The higher the score, the cleaner a country is assumed to be from corruption.

Some countries recommended by PwC in 2022 include New Zealand, Singapore, Switzerland, Netherlands, Germany, Luxembourg, Hong Kong, Australia, Canada, Austria, the United Kingdom, the United States, and the United Arab Emirates, with CPI scores as shown in the graph.

Indonesia was not included in PwC's recommendations. In 2022, Indonesia only achieved a CPI score of 34 out of 100, indicating that its corruption eradication efforts are still weak.

Besides the corruption index, PwC advises that family offices consider tax regulations, human resource quality, and lifestyle and culture in the country where they will operate.