Meaning and transaction use
IFC governance guidance supports defined investment-governance roles and decision processes. [S1]
SEC fiduciary guidance requires investment advice to consider the client relationship, objectives, costs and risks. [S2]
Proposed review method: Reconcile policy bands, current exposures, liquidity, taxes, restrictions and pending cash flows before trading.
Worked example
Illustrative calculation only. All figures are hypothetical.
Scroll the table horizontally to view all columns.
| Measure | Calculation | Result |
|---|---|---|
| Portfolio value | Given | 200.0m |
| Target equity exposure | 200.0 x 45% | 90.0m |
| Current equity exposure | Given | 104.0m |
| Indicative reduction | 104.0 - 90.0 | 14.0m |
The hypothetical portfolio is 14.0m above its equity target before costs, taxes and cash-flow adjustments.
Proposed transaction review process
Define objective
Record decision purpose, scope, owners and constraints.
Collect evidence
Reconcile documents, data, advisers and counterparties.
Assess options
Model base, downside, conflicts and implementation effects.
Approve and monitor
Record authority, actions, exceptions and review dates.
Evidence checklist
Policy
Approved purpose, limits, roles and escalation.
Data
Current records, assumptions, reconciliations and gaps.
Advice
Jurisdiction-specific legal, tax, investment or technical advice.
Decision record
Options, conflicts, approval, implementation and monitoring.
Decision framework
| Situation | Proposed action |
|---|---|
| Authority is unclear | Escalate under the governance framework. |
| Evidence is incomplete | Defer the decision and close the evidence gap. |
| A conflict exists | Disclose, mitigate and use independent review. |
| Conditions change | Refresh advice, analysis and approval. |
Common errors to check
- Acting without a documented decision owner.
- Using stale or incomplete evidence.
- Ignoring conflicts, costs or implementation constraints.
- Failing to monitor the approved action.
Build the portfolio rebalancing decision file
Bring the governing documents, reconciled inputs and decision questions to a structured review. Record assumptions, approvals and follow-up actions.
Discuss the transactionPrimary references and editorial scope
- IFC Family Business Governance Handbook
Institutional guidance on family-enterprise governance, controls, succession and decision structures. Reference checked 17 September 2026. - SEC Investment Adviser Fiduciary Interpretation
Official guidance on investment-adviser duties, conflicts, disclosure and client interests. Reference checked 17 September 2026.
General family-office governance education using public institutional sources. Figures are hypothetical. Facts, governing documents, jurisdiction and professional advice determine actual requirements and outcomes.
General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.
