Family Investment Companies

A FIC allows family members to actively hold shares and make decisions about investments, while a trust places assets under the control of trustees. FICs offer more control and flexibility for shareholders.

Key benefits include control over investments and decision making, flexibility in distributing profits, tax efficiency depending on the family’s assets and investment strategy, transparent governance and clear succession planning for future generations.
If structured carefully, FICs can assist with the protection of assets from relationship breakdowns, claims and the big spenders within the family.

A FIC is typically set up by parents looking to keep wealth within the family and create a vehicle by which to best manage wealth, protect assets, and plan for future generations. Legal and financial advice is recommended to structure a FIC correctly and ensure it is fit for purpose in the short, medium and longer term.
The core structure of a FIC is a company – a well known and understood business structure. The transparency that a company brings is what often appeals to families looking for an alternative to the complexity and ongoing compliance burden commonly associated with trusts.

Yes. With the benefit of different share structures and managing shareholder rights carefully, such as dividend rights, a FIC can make intergenerational wealth transfer more efficient while maintaining family stewardship.

Yes, setting up and running a FIC requires the support of a team of qualified solicitors with a skillset expanding across private wealth, trusts, tax, property and corporate and commercial law. Your legal team can make sure your FIC is set up correctly, covering bespoke articles of association, shareholder agreements, governance, director/shareholder loan documentation, tax compliance, family charters, property transfers, and succession planning.