- within Privacy, Energy and Natural Resources and Strategy topic(s)
Information is now one of the most valuable assets a family office manages, yet many families underestimate the risks associated with their digital and data footprint. From due diligence databases and public records to AI-generated content and online misinformation, information can be easily accessed, shared and amplified. This video explores how family offices can take a proactive approach to privacy planning, helping families understand, monitor and protect their information in an increasingly connected world.
Transcript
When I meet with family offices, one of the things I often like to talk to them about is the concept of privacy planning. Family offices are obviously very used to managing assets, that's what they do for their families and for themselves, for the future, just like any other asset.
The key to any privacy planning programme is always understanding what information is out there, who has it, and ensuring that you understand your information footprint in the world.
Due diligence databases are something that have been little understood, but we work with a lot of clients who have experienced real difficulties because of them. These are private organisations that build and maintain profiles of people. They hold a body of information about individuals which is regularly consulted by banks, financial institutions and most professional service providers during know-your-client (KYC) and onboarding processes. These databases can influence assessments of whether someone will be onboarded as a client.
Clients who encounter difficulties opening a bank account or obtaining legal advice may find the reason lies in information contained within a due diligence profile that they are not aware of. For that reason, we recommend that people understand what information is held about them, obtain a copy where possible, review it carefully, and address any problems or inaccuracies.
In terms of online information, AI has changed everything. It used to be the case that most attention was focused on what appeared on the first page of a Google search. However, with large language model AI, everything is effectively page one. Information that was previously obscure or difficult to find can now be retrieved very easily through references to individuals or businesses.
It is therefore important to be comfortable with the information that is available online. For family offices and families who value their privacy and prefer not to share much information, that is a legitimate choice. However, it is becoming increasingly difficult to maintain complete privacy because AI, in the absence of reliable information, may generate inaccurate or entirely unreliable content.
For that reason, it is often better to ensure that some modest, reliable and accurate information is publicly available rather than leaving an information vacuum. Both individuals and family offices should understand their information footprint and the online information that exists about them.
The family office is often on the frontline when information-related risks arise for family members. Different individuals will have different levels of comfort with sharing information. Family offices may therefore need to coordinate approaches across multiple people and generations. They can play an important role in helping individuals make informed decisions about how their information is shared and used, and what the consequences of those decisions may be.
The starting point for any family office seeking to undertake a strong privacy planning exercise is to conduct an information audit. This should include reviewing public records such as Companies House and the Land Registry to understand what official organisations may be disclosing. It should also include reviewing due diligence databases and understanding what information banks and other institutions hold.
Once there is a clear understanding of the information landscape, any inaccuracies can be corrected and future risks identified. This may include reviewing contracts with domestic and household staff, assessing relationships with service providers, and generally ensuring there is a thorough understanding of what information exists and how it may be accessed or used.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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