A huge proportion of high-net-worth and ultra-high-net-worth individuals (HNWIs and UHNWIs) globally encounter difficulties with asset diversification and regulatory compliance, a new study finds.

According to a recent survey conducted by Owner.One, a digital vault for family assets and capital data, almost half (47%) of respondents maintain all their capital and assets in a single country, with only 22% spreading their wealth across three to four countries. A significant 71.4% of wealth owners hold assets in just one or two countries.

Also, on average, 46.6% of the wealth portfolio of respondents consists of financial assets, while the remaining 53.4% comprises non-financial holdings.

This lack of asset diversification is further complicated by know-your-customer (KYC) regulations for demonstrating ownership continuity and maintaining financial transparency.

The survey shows that 43% of wealth holders are unaware of KYC requirements for proving ownership continuity.

While 30% regularly file the necessary documents, 21% have faced issues and now manage them more carefully. Additionally, 20% of wealth successors see the need to improve KYC compliance for themselves and the original capital founders.

Underscoring the stringent oversight faced by HNWIs and UHNWIs, the survey also finds that 73% of private transactions under compliance scrutiny ranged from US$134,000 to US$4 million.

All this highlights the urgent need for improved awareness and management among wealth holders. By addressing asset transfer complexities and ensuring regulatory compliance, HNWIs and UHNWIs can more effectively navigate the challenges they face, according to Owner.One.

The study was conducted across 18 countries in Africa, the Middle East, Asia, the European Union, the United Kingdom, and North America. It covered 13,500 individuals with net worth ranging from US$3 million to US$99 million.