This week Jordan Greenaway, Managing Director of Transmission Private, featured in The Wall Street Journal. He discussed how the Archegos scandal may change behaviour amongst family offices and how it could quicken the pace of regulatory action.

Summary

• This is a wake-up moment for the industry. Regulators were already starting to look closely at the market, but this will only quicken the pace of regulatory action. If you’re a family office that’s still trying to play fast and loose in the shadows, you’ll soon start to find that banking partners stop returning your calls.
• It’s not just opening up about your investments and holdings, but also your banking relationships. No one blinks an eyelid when a big corporate lays out their financing in their Annual Report, but the idea of a family office doing that is still alien.
• I have no doubt that that will start to change. You’ll start to see family offices publishing Annual Reports, detailing their investments and holdings, and laying out clearly their financial position. The family offices that start to do this first will continue to maintain strong relationships with banks, as regulators start to breathe heavily on their necks.

View original coverage: Wall Street Journal →