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Digital Wealth Asia Forum 2019 HK - Exclusive Insights - Bernard Lee

Bernard Lee of HedgeSPA

Dec 2, 2019

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1. What are the opportunities and challenges that MFOs will face in the next 5 years?

Video transcript

1. What are the opportunities and challenges that MFOs will face in the next 5 years?

In the past, what we tend to see is that these family offices would rely on one or two major private banks to give them access to, what I would call, a tier one infrastructure. That usually comes with a price, meaning that they have to send a certain number of trades to these private banks. Typically, like for instance if we are talking about the typical American, top names, they charge a lot more in terms of commission than the other guys. So, one of the opportunities that we see is that a lot of these guys are looking at (this and saying), "Hey, that doesn't make any sense." So why not just have our own platform, if I can get the similarly institutional quality platform, but then I would round the trades to whoever I want, right? I think along with that, probably within the next five years, what some of these guys are looking for is that when they get a solution like ours, they still have to, pretty much, hire an entire team of back office people to process a trade. So one of the opportunities that we see is that some of these guys are really keen to say, "Hey, if you're sending me most of these instructions anyway, if I approve them or if I just review them and pick and choose what I want to approve, right? Why not just have a way to do the execution, just so that we keep the process a little bit simpler?" And most of these guys believe that there should be some savings involved because if we do this for one family office, that's obviously costly. If we do it for multiple family office, just like a multi-family office, the cost should come down significantly.

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