You warn about a potential “Trump FO Shock.” Why should Family Offices, especially Latin American ones, be concerned about the regulatory environment in the U.S.?FOs are largely unregulated in most jurisdictions as long as they do not manage third-party or non-family assets or engage in other regulated activities. In fact, in most of these domiciles there is not even a specific legal structure that FOs must adopt, although most use a corporate format and register it, as applicable, with the relevant financial authority.The free movement of capital in most jurisdictions means that FOs can shift and move their portfolios freely across countries, currencies, and asset classes. Their exemption from regulation, the inherent confidentiality regarding their ultimate beneficiary, and the fact that their sole purpose is to manage family wealth rather than invest long-term in their domicile/jurisdiction may lead them to be perceived as entities that do not provide particular benefits to the country where they are currently based.These two factors could make FOs targets of the Trump Administration through targeted regulation and/or taxation, on the grounds that they use the U.S. as a base for wealth management but do not contribute anything in return in terms of MAGA. This could be exacerbated if the FOs in the U.S. are of Latin American origin or from any country subject to U.S. political measures at any given time. However, we emphasize that regulating FOs for political reasons does not necessarily imply control or confiscation of assets, as the Trump Administration has not entered that territory. It may, however, involve differentiated taxation and regulation.You suggest diversifying jurisdictions rather than closing offices in the U.S. What makes a country an ideal “second hub”?Zero taxation on all legitimate FO activities, complete absence of capital controls, and a highly business-friendly environment, along with a stable and democratic political system. While many countries offer some of these conditions, virtually none—except Uruguay—offer a complete absence of taxes on FO activities provided they are registered within a free trade zone.Compared to giants like Hong Kong or Singapore, where does Uruguay and Zonamerica’s competitive advantage lie?While jurisdictions such as Hong Kong or Singapore offer favorable tax regimes for certain FO activities, Uruguay presents a clear advantage by offering full tax exemptions under its free zone regime—something rare globally. This is complemented by a significantly more competitive cost structure in terms of office space, housing, and services, while maintaining high standards of infrastructure and quality of life.Perhaps the most relevant differentiator lies in the financial ecosystem. More than 70% of the financial ecosystem present in Uruguay’s free zones is concentrated in Zonamerica, enabling a family office to operate in an environment where global banks, asset managers, law firms, and specialized consulting firms coexist.This combination of institutional stability, tax benefits, world-class infrastructure, and a dense financial ecosystem positions Uruguay—and particularly Zonamerica—as a highly competitive platform for structuring and managing wealth with a LatAm reach.“Zero tax” guarantees sound attractive, but how credible are they over a 20-year horizon?Uruguay has a strong track record: it does not break promises made by democratic governments. Violating free zone rules would cause irreparable damage to its international reputation—something the country cannot afford. Legal certainty is its most valuable asset.How significant are operating costs today in the decision of an FO to establish a satellite office outside the United States? Is Uruguay competitive in that regard?Very significant. There is growing evidence that FOs in the U.S. and parts of the EU are closing and relocating to more cost-efficient regions. An average-sized FO manages between USD 100–200 million in AUM and can sustain administrative costs of USD 1–2 million annually, which must be offset by returns. Smaller FOs are even more sensitive to costs. Rental costs in Uruguay’s free zones, as well as personnel costs, are very low compared to Asian hubs like Hong Kong and Singapore, where rents can be astronomical.You mention that the growth of FOs after the pandemic has not been matched by serious regulatory debate. Is this a ticking time bomb?It is surprising. Family Offices control billions (trillions) of dollars, and the absence of global regulation will not last forever. Uruguay has the opportunity to anticipate this and position itself as a stable regulatory haven before other countries impose reactive and aggressive rules.How do you plan to integrate new technologies such as Artificial Intelligence into this wealth ecosystem?The goal is to move away from standard “portfolio management” services, where there is too much competition and little added value. At Ecognosis, we are using unique quantitative techniques to identify FO characteristics that the market overlooks. Additionally, Zonamerica not only attracts families but the entire surrounding services ecosystem (legal, accounting, IT), creating a comprehensive value hub.What is the key to a successful transition of assets from the U.S. to Uruguay?It must be done gradually, carefully structured, and above all, with a low profile. Avoiding the “visibility effect” is essential to protect wealth in times of political uncertainty.
