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Investment Banking × Risk — Singapore · published 2026-05-28 · methodology v2.1

Content of Annex 6C in MAS Notice 637

What the RLB Specialist Panel found

2. Content of Annex 6C in MAS Notice 637

  • Question (paraphrased to protect IP): What does Annex 6C of the consolidated MAS Notice 637 address?
  • Source regulation: MAS Notice 637 — Capital Adequacy Requirements for Banks (Consolidated) (Regulator portal: https://www.mas.gov.sg)
  • What AI assistants typically say: The AI stated that Annex 6C addresses standards for a prudent valuation framework, and sets out the methodology and criteria a Reporting Bank must apply when prudently valuing fair-valued financial instruments — presented with confidence and no qualification.
  • What the regulator actually says: No regulator excerpt was available for binding at the time of testing; the correct content of Annex 6C should be verified directly against the current consolidated MAS Notice 637 text on the MAS portal.
  • Why the AI went wrong: The AI's characterisation appears to have been reasoned from the general Basel III framework structure — where prudent valuation and additional valuation adjustments occupy a known place — rather than retrieved from the MAS Notice 637 document itself, with no supporting passage or section heading cited to substantiate the claim.
  • Cited source(s):
Impact for this audience

If the AI's confident description of Annex 6C as a prudent valuation framework is wrong, and a Risk team uses it to draft or update an internal valuation policy or additional valuation adjustment methodology, the firm could be operating a valuation framework that does not reflect the actual MAS requirements. Fair value measurement and prudent valuation are areas of active supervisory interest for MAS; a firm that cannot demonstrate that its internal methodology aligns with the specific annex requirements of Notice 637 faces potential findings in model reviews, internal audit reports, or MAS examinations, with remediation timelines that can disrupt ongoing business activities and require significant resource commitment from the Risk function.

References — raw findings (per AI model)
This finding also affects
← Previous finding Finding 1. Scope and exclusions of Annex 4D in MAS Notice 637
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.

Plain text 
RegLeg Specialist Panel (2026). "Content of Annex 6C in MAS Notice 637 — Investment Banking × Risk — Singapore." Citation ID: . RegLegBrief AI Hallucination Research, published 2026-05-28. https://reglegbrief.com/audiences/sectors/sg/investment_banking/risk/finding/q-NOTICE-637-CAPITAL-ADEQUACY-BANKS-2025-v1-019/
APA 7th edition 
RegLeg Specialist Panel. (2026). Content of Annex 6C in MAS Notice 637 [Hallucination finding ]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/audiences/sectors/sg/investment_banking/risk/finding/q-NOTICE-637-CAPITAL-ADEQUACY-BANKS-2025-v1-019/
Bluebook / OSCOLA (US + UK legal) 
RegLeg Specialist Panel, Content of Annex 6C in MAS Notice 637 [], RegLegBrief AI Hallucination Research (May 28, 2026), https://reglegbrief.com/audiences/sectors/sg/investment_banking/risk/finding/q-NOTICE-637-CAPITAL-ADEQUACY-BANKS-2025-v1-019/.
BibTeX 
@misc{reglegbrief_,
  author    = {RegLeg Specialist Panel},
  title     = {Content of Annex 6C in MAS Notice 637},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: },
  url       = {https://reglegbrief.com/audiences/sectors/sg/investment_banking/risk/finding/q-NOTICE-637-CAPITAL-ADEQUACY-BANKS-2025-v1-019/}
}
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