A new report says the super wealthy in the UK capital are increasingly using family offices to manage their money.

London’s ultra-rich are increasingly using family offices to protect their wealth, according to a BBC report, which cites new research from the London School of Economics.

Family offices are private wealth management advisory firms that serve ultra-high net worth clients. Family offices employ a range of professionals – such as advisors, lawyers, financiers and psychologists – to offer a total solution to manage finances and investments of an affluent family.

By the LSE’s definition, these offices work for families worth at least £200 million ($247.2 million).

Family offices have burgeoned in line with the concentrations of UHNW individuals in cities that act as financial hubs, such as London.

The study quoted a US report from 2010 which found that 50 of the wealthiest family offices were looking after $500 billion.

Researcher Luna Glucksberg says their role “demands more scrutiny”.

A family office’s role “goes far beyond that of private bankers,” said Glucksberg. “They are about creating dynasties, ensuring generational transfers of wealth.”

LSE’s study suggests that as extreme wealth grows alongside poverty and the number of low-income families, there is further analysis required of how this money is preserved.

Family offices "play a crucial role" in how advantages are handed on between generations, with full-time staff able to make long-term, strategic planning, the study says.