Professionals from Europe and around the world converged in Budapest on October 12-13, 2023, to attend the STEP Europe Conference. This prestigious event was organized jointly by STEP Europe and STEP Hungary, both integral components of STEP, a global professional body with more than 21,000 members. These members, comprising lawyers, accountants, trustees, and various practitioners, are dedicated to aiding families in planning their financial legacies. Their mission is to inspire confidence in multi-generational wealth planning by setting and upholding high professional standards, informing public policy, promoting education, and facilitating global connections among practitioners.
The conference commenced with warm welcome speeches by István Sándor TEP, Chair of STEP Hungary, and Paolo Panico TEP, Chair of STEP Europe. These opening remarks offered a glimpse into the current issues and future aspirations of STEP Europe. The goal of the organization is to provide practitioners with the tools and knowledge needed to excel in the ever-evolving landscape of wealth management.
H.S.H. Prince Michael of Liechtenstein TEP delivered the keynote address, focusing on the crucial topic of “Multi-generational wealth preservation: the impact of family businesses.” His insights likely shed light on the intricate dynamics of family businesses and how they influence wealth preservation over time.
The morning session provided attendees with valuable insights into current asset management issues in Hungary, presented by esteemed Hungarian experts Dr. Balazs Békés and Dr. Akos Menyhei. In his presentation, Dr. Menyhei not only introduced two unique asset and privacy protection structures, the Hungarian asset management foundation and the hybrid trust but also discussed their pivotal role in Hungarian family offices, shedding light on the emerging Hungarian family office market.
A thought-provoking panel discussion titled “Are We Family,” moderated by Alberto Perez Cedillo, addressed issues advisors must consider. The discussion encompassed the complexities of blended families, gay marriage, alternative parenthood methods in LGBTQ+ couples, and the unique challenges faced by older LGBTQ+ individuals. Presenters, including Jean-Charles Gardetto, Andrew Powell, and Francesca Maria Zanasi, shared their expertise on these intricate matters.
The following session, moderated by Dr. Judith Taic, delved into the relocation of high-net-worth individuals. This segment covered a wide array of topics, including immigration issues, the establishment of tax residence, preferential tax regimes for individuals, and the pros and cons of these regimes. Presenters, including Luigi Belluzzo, Nuno Cunha Barnabé, George Economides, Javier Frias Sanz, and Meir Linzen, offered comprehensive insights into the complexities of international relocation.
In the afternoon’s opening session, Stella Kammitsi took on the role of moderator as presenters delved into the subject of Inheritance law, compulsory heirship regulations, and the execution of judgments, using a captivating Case Study as their guiding example. Distinguished speakers hailing from various European countries provided their unique insights on this case. Lyn Barry offered a perspective from Ireland, Péter Kun shared the Hungarian approach, Vlastimil Pihera discussed the Czech viewpoint, Dr. Judith Taic provided insights from Israel, and Rania Vrondou shed light on the Cypriot perspective.
The topic of “Buying Property Overseas and Whether That Is Such a Good Idea” was explored in a panel moderated by Panicos Loizou. Antonio Longo shared important facts and insights about Italian regulations, while Evi Papacleovoulou and Nicos Papacleovoulou discussed the factors to consider when buying property in Cyprus. Xavier Xivillé covered the Spanish perspective, addressing topics such as structuring a real estate investment, the Spanish Golden Visa, and the Impatriate regime.
The subsequent panel, moderated by Maurizio Cohen, addressed the question: “Until death do us part?” Jérôme Barré introduced key information related to the French jurisdiction’s matrimonial regime, highlighting inheritance and taxation aspects. Giovanni Cristofaro’s presentation shed light on the theme of separation and divorce from the Italian perspective. The German angle was covered by Daniel Lehmann, who discussed marriage contracts, wills, testaments, and inheritance contracts.
The final panel of the first day discussed the current issues related to trusts and foundations in the Czech Republic. In their presentations, Petr Jakubec and James Turnbull discussed the confusion, anxiety, and opportunities surrounding these legal structures.
The second day of the STEP Europe Conference began with fresh enthusiasm. After an evening of fine dining at one of the city’s most prestigious restaurants, attendees returned to delve into another day of engaging presentations and panel discussions that tackled some of the most pertinent challenges and innovative developments in the world of wealth management.
The day commenced with an engaging panel moderated by Dr. Ineke Koele, centering on “Trusts and litigation: a civil law approach.” Offering valuable insights into the intricate world of trust litigation, Prof. Avv. Marta Cenini took the stage to provide the Italian perspective on this complex subject.
The following session, skillfully moderated by Paolo Panico, tackled one of the most pressing challenges professionals in the sector face today – “the Increasing compliance burdens of trustees and wealth managers.” This critical discussion featured expert presenters: Daniel Paserman, MMag. Michael Petritz, Dr. Gábor B. Szabó, and Nicky Xenofontos. Together, they navigated through the current European legislative environment, highlighted controversies surrounding compliance, and touched upon adaptations in the Ultimate Beneficial Owner (UBO) registers in the region. Dr. B. Szabó posed a thought-provoking question, “Is The Abnormal the New Normal?” while shedding light on the dynamic and ever-changing regulatory landscape and providing insights into how professionals can adapt.
The conference then delved into the realm of family offices, an area of increasing interest and significance in the wealth management landscape. Under the guidance of Marco Cerrato, a panel of experts addressed the questions of “why” and “how” to set up a family office. Dr. Marten B.T. de Groot offered a profound exploration of the concept of Enterprise Families behind the Family Office. Dr. István Illés delved into the Developing Hungarian Family Office Culture and the unique challenges it must confront. May Lolli-Ghetti completed the panel by sharing her insights on Establishing a Family Office in Monaco.
Moderated by Alberto Perez Cedillo, the following section was aptly titled “The Legal Bucket List – Safeguarding Adults.” Kelly Greig took the stage to offer her expertise on this critical topic, exploring the legal measures and considerations involved in safeguarding adults.
The subsequent panel ventured into the ever-evolving digital landscape, addressing the themes of crypto, Web3, and artificial intelligence (AI). Ross Belhomme led the discussion by highlighting the top crypto challenges in wealth and estate planning and addressing the pressing issues and questions connected to current regulations. In his presentation about Artificial Intelligence, Dr. Niklas J.R.M. Schmidt offered a concise summary of large language models, highlighting their limitations and the potential disruptions they may cause in the field.
Aldona Leszczyńska-Mikulska concluded the conference’s second day with a presentation introducing the Polish family foundation and its unique tax treatment.
The conference provided a comprehensive and insightful exploration of the intricacies of wealth management, family planning, and legal considerations, inspiring excellence among professionals in the field.
The STEP Europe Conference in Budapest showcased the commitment of STEP and its members to maintaining high professional standards, facilitating global connections, and advancing knowledge in the field of wealth management. It offered attendees an invaluable opportunity to expand their expertise and network with peers from around the world.
