Replacing a family office vendor without disruption
Built on Chapter 7 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
Replacing a vendor is a transfer of responsibility. The family needs to know who handles each obligation during the change and where the records will be when the old relationship ends. Signing the new engagement is only one part of that work.
Chapter 7 calls for evaluating outside relationships as the family's needs change. A billionaire family should be able to improve service without losing track of an account, filing assignment, or pending instruction. Build the transfer around those live obligations before changing ordinary contact details.
Establish why the relationship is ending
Record the service problem or change in need. A poor response to information requests requires a different selection discussion from a move to more complex investments. The incoming firm should understand the work it must improve without receiving unnecessary commentary about individuals.
Keep the evaluation factual. Identify missed deliverables, unresolved questions, and work outside the old scope. Have the appropriate professionals assess contract requirements and any disagreement with the outgoing firm. The office needs a practical transfer plan even if a separate dispute remains open.
Richard's concern about unowned coordination
On coordination during a provider change, I describe the failure of coordination behind some family-office service offerings. Departments can fail to communicate and leave clients without planning they expected. I would apply that concern directly to a provider change.
Ask the outgoing and incoming firms to identify who owns each task during the transfer. If both say the other firm will handle a pending issue, the office lead needs an authorized resolution before the issue is due. This is an application of my recorded warning, not a claim that the two firms must share responsibility indefinitely.
Inventory the live work
List unfinished projects and recurring obligations affected by the change. Include requests already sent to third parties and information still expected from the family. Identify who can answer a question about work completed before the new firm arrived.
Do not rely only on a collection of final reports. The incoming professional may need the underlying records and the explanation of an unresolved difference. Ask that professional to specify what is necessary for the assignment. Keep the outgoing firm responsible for supplying the material it has agreed to provide.
Build the handover around acceptance
Sending files and receiving usable files are different events. Have the incoming firm confirm that it can open the material and understand the relevant records. If it identifies a gap, assign the request and preserve a record of the response.
The office coordinator should be able to explain which parts of the transfer are complete and which still depend on the former provider. Avoid announcing completion while the new team is waiting for information needed to perform its first assigned task.
Manage permissions deliberately
Identify the systems and accounts the outgoing firm can access. Have the appropriate specialists plan how permissions change without preventing the transfer of required records. Confirm when removal has occurred.
Give the incoming firm only the access its role requires. Do not copy the old access list without assessing whether the new scope is the same. A new relationship may handle fewer functions, or it may require a different person to approve actions. Keep the authority and access records consistent.
Check one ordinary cycle
Where appropriate, have the incoming provider complete an ordinary reporting or administrative cycle before the old arrangement fully closes. Compare the output with source records and investigate unexplained differences. An overlap should have a defined purpose and proper terms.
The aim is to find missing information while someone can still answer the question. It does not mean paying indefinitely for duplicate work. Record the acceptance condition and the person authorized to confirm it has been met.
Communicate the new route
Tell the relevant advisors who now receives requests and where they should send information. Confirm the change with people whose work depends on the provider's output. A new contact list is useful only if the people sending the records actually use it.
Retain the transfer record and identify where earlier work can be found. The founder should receive a short explanation of any remaining issue and who owns it. The office can close the old engagement when the agreed conditions are met, while keeping enough information to answer a later question about the transition.
What to take from this
- Transfer live obligations alongside records.
- Require the incoming firm to confirm usable receipt.
- Change access and third-party instructions deliberately.
This page is general information, not legal advice. Family governance documents and dispute processes should be reviewed by a qualified attorney.
Questions and answers
Is the new engagement enough to complete the switch? No. The records, pending work, permissions, and communication routes also need to transfer.
Should there be an overlap? Use a defined overlap when appropriate for continuity, with clear scope and an ending condition.