AI Hallucination ResearchFindings by audienceSectorsInternational / MultilateralInvestment BankingComplianceDetail › Finding
Investment Banking × Compliance — International / Multilateral · Last updated 11 Jun 2026 · Hallucination Register
Share / Print X LinkedIn Email

Finding#3, Assessment period mischaracterised as 2023–2024 not 2023–25

RLB Citation ID: RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005
AI's failure:Outdated Risk for Investment Banking × Compliance:Wrong deliverable
What the RLB Specialist Panel found
Question (paraphrased to protect IP)

A trade repository is preparing an internal regulatory engagement summary. Draft a 1-page methodology note on the November 2025 CPMI-IOSCO Level 3 assessment on general business risk: when the assessment process began, when data was collected from FMIs, when the assessment formally concluded, how many FMIs responded, on what basis they participated, and how findings were validated with FMIs before publication.

RLB's analysis

The model truncated the assessment timeline at 2024, dropping the 2025 engagement rounds that are explicitly documented in the published text and that include the follow-up validation process with participating FMIs. The error is not an inference about an unstated date, the regulator's published document specifies the 2025 endpoint and the nature of the engagement in that period.

The truncation is consistent with a retrieval boundary in late 2024 or early 2025 that caused the model to reproduce the portion of the timeline present in its indexed content while silently omitting the more recent period, without signalling any uncertainty about the completeness of its response.

AI Head's analysis — what weakness in the AI model caused this

This failure implicates the retrieval pipeline's indexing boundary for BIS-IOSCO assessment publications: the model reproduced a 2023–2024 window for the assessment process while the published document specifies a 2023–2025 window with explicit April 2025 follow-up engagement dates. The subsystem gap is indexed-content completeness for Q4 2025 BIS publications — the model returned the portion of the timeline available in its indexed content without uncertainty-flagging that the more recent period might be missing from its view.

Impact for Compliance Teams in Investment Banking Sector in international jurisdictions working with the Implementation Monitoring of the PFMI: Level 3 Assessment on General Business Risks

An AI tool characterised the November 2025 CPMI-IOSCO Level 3 assessment as having been carried out during 2023 and 2024, omitting the 2025 FMI validation phase that CPMI-IOSCO explicitly includes in the authoritative 2023–25 characterisation. For a Compliance team building PFMI self-assessment benchmarks or contextualising the assessment for board reporting, this error misrepresents the process provenance and may cause the firm to sequence its own CCP oversight conclusions incorrectly against the publication timeline.

Any regulatory correspondence or internal audit submission that cites the wrong assessment period creates a verifiability gap that regulators and internal audit will identify, requiring correction and potentially prompting broader scrutiny of the team's source-verification controls.

References — raw findings (per AI model)
This finding also affects
← Previous finding Finding#2, KC3 and KC4 requirements merged into single misattributed formula
Cite this finding

Each finding has a stable Citation ID (RLB-F-… for aggregated case-study findings, RLB-H-… for raw per-model hallucinations) — like a DOI, the ID always resolves to the canonical finding even if URLs change.

RLB Citation ID: RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005
Plain text Download
RegLeg Specialist Panel (2026). "Finding#3, Assessment period mischaracterised as 2023–2024 not 2023–25 — Investment Banking × Compliance — International / Multilateral." Citation ID: RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005. RegLegBrief AI Hallucination Research, published 2026-06-11. https://reglegbrief.com/regulators/j1/int/BIS-CPMI/CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025/sectors/investment_banking/compliance/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-005/
APA 7th edition Download
RegLeg Specialist Panel. (2026). Finding#3, Assessment period mischaracterised as 2023–2024 not 2023–25 [Hallucination finding RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j1/int/BIS-CPMI/CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025/sectors/investment_banking/compliance/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-005/
Bluebook / OSCOLA (US + UK legal) Download
RegLeg Specialist Panel, Finding#3, Assessment period mischaracterised as 2023–2024 not 2023–25 [RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005], RegLegBrief AI Hallucination Research (June 11, 2026), https://reglegbrief.com/regulators/j1/int/BIS-CPMI/CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025/sectors/investment_banking/compliance/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-005/.
BibTeX Download
@misc{reglegbrief_RLB_F_INT_BIS_CPMI_IOSCO_PFMI_L3_GENERAL_BUSINESS_RISK_2025_Q005,
  author    = {RegLeg Specialist Panel},
  title     = {Finding#3, Assessment period mischaracterised as 2023–2024 not 2023–25},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-F-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q005},
  url       = {https://reglegbrief.com/regulators/j1/int/BIS-CPMI/CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025/sectors/investment_banking/compliance/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-005/}
}
← Back to case study summary Case study detail →

Every finding on this page compares an AI subject's account of the rule against the regulator's verbatim text from the regulator's own portal. Both are linked. Each delta, its root causes, and impact analysis are documented and published with immutable Citation IDs.