Risk, Governance & Oversight

At Salient PCS we believe that robust governance, continuous oversight and a real understanding of risk are required across all areas of wealth management, preservation and transfer.

What is the point of holding wealth in a sophisticated tax structure if people take actions which compromise the integrity of that structure?

What happens if a high value physical asset it seriously damaged or destroyed; perhaps resulting in injury to others? Is insurance/risk financing part of the protection as well as the holding structure? Is that insurance sufficiently tailored to your situation and requirements, or is it an off-the-shelf retail product? All too frequently, the answer is “no”.

How can you be sure that no one can appropriate income or assets that should belong to you – either directly through fraud or theft, or indirectly through commissions or backhanders? We have encountered situations in which a trusted family advisor was diverting significant funds to their own accounts. We have also encountered notionally independent trustees who have appointed investment managers not because of their competence, but because they had agreed to receive a kickback from the management fee being charged.

Risk, and the downside that may result, is impossible to avoid altogether. However, it is possible to anticipate potential risk before it materialises, to monitor it, manage it and even transfer it. With the right combination of governance, oversight and risk management, some bad outcomes can be completely avoided and a cushion can be created through which to absorb the impact of others.

Our job at Salient PCS is not to second guess your tax advisor, your investment manager, the head of your family office or your trustees. Rather it is to ensure that:

• They have the necessary protocols, processes, checks and balances in place to protect your interests; 
• They are consistently following and implementing those protocols and processes;
•  That insurance, risk transfer and risk financing are always part of the strategy for wealth preservation; and
•  That there is ongoing monitoring and oversight being exercised on behalf of the principal and their family.

Control,  Oversight Protocol & Process Design

Every HNW client needs to have confidence that their interests and objectives will be served by the employees, service providers and legal structures that they are paying for. In the private client world a huge amount of emphasis is placed on optimal tax and legal structuring, and on investment management. In our experience, insufficient focus is given to overarching governance, oversight and control – the means through which clients can be certain that everything is geared towards their best interests, the risk of bad outcomes is minimised and those acting on their behalf are accountable.

We develop and help to implement the processes and protocols necessary to ensure that trust structures, family offices and investment managers are accountable to, and always act in the best interests of, their clients.  

Risk & Governance Audit

We strongly recommend that high net worth clients  shall periodically commission a thorough independent review of their wealth management structure – including the activities and actions of investment managers, family office, trustees and third-party advisors. Our objective in conducting this type of audit for our clients is not to find fault with other service providers. Rather it is to identify risks and weak points that may have been overlooked or not thought through, and to provide concrete recommendations for addressing them.

Protector services

Our experts are available to act as Protectors for your trust structure; overseeing the activity and performance of your trustees and having the power to intercede if necessary. Our Protector services answer a key question for HNW clients: quis custodiet ipsos custodies? (Who will guard the guardians?) We are here to ensure that your trustees perform their role optimally, and always in your interests.

Insurance and Risk Financing

We help our clients to identify the right type of risk transfer or risk financing solution to protect them from financial downside if something goes wrong. We do not operate as brokers or insurers, but with our lengthy experience in commercial insurance markets we know who to turn to for different types of cover. We also understand how to approach things if sufficient coverage is not available.

We find innovative insurance solutions specifically for high net worth clients and families. We help to structure protection in volatile political environments; to protect against the reputational and financial risks of the internet age and we assist with  integrating insurance solutions with wealth transfer goals.