The importance of investment policy statements for family offices in Cyprus

Yelena Martino, CEO of Signet Capital Management Group, reports a recurring pattern of structural vulnerabilities in wealthy Cypriot families. Despite having trusts, holding companies, or foundations, many families lack a written Investment Policy Statement (IPS). Common scenarios involve health crises of patriarchs, sudden liquidity following business sales, or disputes between siblings regarding future asset management. In Limassol, some family offices struggle with complex legacy portfolios that lack clear documentation or historical rationale. These challenges are exacerbated by a cultural tendency to avoid open discussions about succession. Martino identifies the absence of a defined IPS as a significant risk factor for wealth preservation. The interplay between local, European, and international regulations adds layers of complexity to these family structures. Without a unified document outlining the purpose of wealth and decision-making protocols, families remain vulnerable to internal conflicts.