For CMS licensees
AI risk management for CMS licence holders
Fund managers, dealers and advisers: the AIRG applies to your AI too.
AI turns up across capital markets firms: in fund and portfolio management, dealing and execution, research, and investment advice. The MAS AI Risk Management Guidelines (AIRG) apply to Capital Markets Services licence holders as they do to all financial institutions, so each use needs to be identified, rated for materiality, and controlled in proportion to the harm a failure would cause.
Where AI informs an investment decision or a client outcome, its materiality is higher, so expect more scrutiny on validation, ongoing monitoring and fairness. The emphasis for CMS firms is matching the depth of control to that materiality rather than treating every tool the same. For the investing and forecasting applications specifically, the topic guides go deeper. A fuller guide for CMS licensees is coming.
Where to start
- The complete guide to AI risk management in finance in Singapore - the whole picture in one place.
- The AIRG explained - the guidelines your firm is supervised against.
- The AIRG in practice - identification, inventory, materiality and lifecycle controls as a working system.
- AI for investing and AI for forecasting - the applications most relevant to your desk.
I developed the AIRG while leading AI risk supervision at MAS, and now advise capital markets firms independently. I am building a fuller guide for CMS licensees; subscribe to get it, and future updates on the AIRG.