Who owns a family’s data, analyses, and records created by a multifamily office?
Ownership depends on the engagement agreement, the type of material, and applicable law. The family usually provides the underlying personal and financial information. The office may retain copies, working papers, models, and compliance records. Those records may remain with the office after the relationship ends, subject to contract, privacy duties, and retention requirements.
Start with the engagement agreement
There is no universal ownership rule for every document a multifamily office creates. The engagement agreement should identify rights relating to client supplied information, final reports, investment analyses, planning models, databases, templates, and internal workpapers. It should also state what the family can receive when the relationship ends, in which format, and within what time. Ask for these terms before signing and reviewing them whenever services or entities change.
A family may retain rights to information it provides, such as statements, family records, valuations, and personal details. That does not automatically determine rights to every copy, spreadsheet, note, or process used by the office. The agreement should distinguish the family’s information from the office’s pre-existing systems and general tools.
Records the office must keep
If the office or an affiliated adviser is registered with the SEC, the adviser must make and keep required books and records relating to its advisory business under Rule 204-2. The SEC describes records that can include journals, ledgers, orders, and other materials supporting advisory activity. SEC Rule 204-2
A retention duty does not, by itself, determine who owns the underlying data or intellectual property in an analysis. It means the office may need to preserve records and provide them to regulators or other parties with lawful access. The SEC describes a five year retention period for many adviser records, with the first two years in an accessible office. SEC guidance
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Privacy and access after termination
Ownership is only one issue. Financial privacy rules can limit how an office uses or shares information. The FTC Safeguards Rule requires covered financial institutions to protect customer information, including records containing nonpublic personal information handled by or for the institution. FTC Safeguards Rule
Before ending a relationship, request a written inventory of records, copies of family supplied materials, final analyses, and a schedule showing what the office must retain. Ask how retained records will be secured, who may access them, and when they will be destroyed after legal and contractual duties end. Have counsel review unusual ownership, licensing, or deletion language.
Related guides
- Family Governance With a Multifamily Office
- How to Choose a Family Office: A Step by Step Decision Guide
- Access to Alternatives Through an MFO: A Practical Guide for Families