For financial advisers
AI risk management for financial advisers
AI in advice is customer-facing, so it carries higher materiality under the AIRG.
AI turns up across a financial advisory firm: in suitability and advice tools, client communications, lead generation, and back-office work. The MAS AI Risk Management Guidelines (AIRG) apply to financial advisory firms 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.
Advice is consumer-facing and consequential, so fairness, transparency and human oversight matter most here, with the FEAT principles as the backdrop. A poor or opaque AI-driven recommendation to a customer is exactly the kind of material adverse impact the AIRG is written around, so advice tools sit at the higher end of scrutiny. A fuller guide for financial advisers 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 hygiene for individuals - the basics for anyone using AI tools day to day.
I developed the AIRG while leading AI risk supervision at MAS, and now advise financial advisory firms independently. I am building a fuller guide for financial advisers; subscribe to get it, and future updates on the AIRG.