CBFL Seminar Series: Navigating Trends in Private Wealth Management

On 16 October 2025, the Centre for Banking & Finance Law was pleased to host a seminar entitled “Navigating Trends in Private Wealth Management”, featuring presentations by Professor Dr Alexandra Butterstein (University of Liechtenstein), Professor Dr Martin Wenz (University of Liechtenstein) and Professor Dr Francesco A Schurr (University of Innsbruck).

Prof Dr Alexandra Butterstein began by exploring, from an English law perspective, the intersection of ESG and CSR principles with trustees’ investment duties. Trustees generally face a tension between maximizing financial returns and considering non-financial factors. Ideally, settlors would clearly outline the trustee’s investment powers. Otherwise, trustees may be able to act as if they were absolute owners, under the Trustee Act 2000. However, trustees must still uphold a high standard of care and seek professional advice where necessary. ESG strategies may align with trustees’ duty of prudence if they offer equal or better returns with comparable risk. Trustees typically have less flexibility under private express trusts than under charitable trusts. However, trustees lack a “safe harbour” akin to the business judgment rule in company law. The presentation was followed by a brief discussion about the perception of the English legal approach in European contexts.

Next, Professor Dr Martin Wenz examined global tax trends affecting family offices, ultra-high net worth individuals (UHNWIs) and philanthropic structures. Though the international tax landscape has been shaped by bodies like the G7, G20 and OECD, the Global South and the UN are emerging voices. Prof Dr Wenz introduced the topic of tax-driven migration, noting that research suggests that “millionaire exodus” media stories are not the norm, nor are they typically attributable to tax factors. However, highly mobile UHNWIs do create tax challenges for countries. As far as improvement and reform goes, Prof Dr Wenz noted that the benchmark idea is a progressive income tax system with a broad conception of what “income” is. Looking to the future, Prof Dr Wenz suggested that Singaporean initiatives like the “OHAS” pilot project and philanthropy tax incentive scheme could aim to position it as a philanthropy hub.

Finally, Professor Dr Francesco A Schurr explored the growing role of generative AI in trust administration from a comparative legal perspective. AI is increasingly used in charitable trusts due to their broad beneficiary classes and large asset bases, with adoption now also expanding into family trusts. While trustees may delegate tasks to AI, core decisions like distributions or terminating the trust cannot be delegated. Liability remains with the trustee, and existing doctrines like culpa in eligendo could be applied to AI-related breaches. Prof Dr Schurr noted that AI systems pose risks regarding bias, ethics, privacy and herd-like behaviour. In this context, trustees that are unsure about AI adoption could seek court approval, but there currently is no clear duty to delegate to AI (though one could exist in future). Prof Dr Schurr then addressed questions from the audience about the distinction between the duty to delegate and the duty to seek advice, and the nature of the duty to delegate.