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

Subject matter of Annex 6C in MAS Notice 637

What the RLB Specialist Panel found

2. Subject matter 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 in Singapore) (Regulator portal: https://www.mas.gov.sg)
  • What AI assistants typically say: The AI described Annex 6C as addressing standards for a prudent valuation framework, setting out the methodology and criteria that a Reporting Bank must apply when prudently valuing fair-valued financial instruments, including the calculation of additional valuation adjustments.
  • What the regulator actually says: No verified regulator excerpt was available at the time of testing. The actual content of Annex 6C should be confirmed directly against the current consolidated text of MAS Notice 637 published on the MAS website.
  • Why the AI went wrong: The AI attributed prudent valuation and additional valuation adjustment content to Annex 6C by reasoning from general Basel III framework conventions rather than from any retrieved passage of MAS Notice 637. No section heading or document extract was provided to support the characterisation, and the confidence of the response was not matched by any verifiable source — raising a material risk that the actual annex covers different subject matter.
  • Cited source(s):
Impact for this audience

A Risk team acting on the AI's Annex 6C characterisation could document prudent valuation requirements and additional valuation adjustment criteria that do not reflect the annex's actual content, embedding the error in the firm's fair-value measurement policy, model validation papers, and board-level capital ratio reporting. Prudential valuation adjustments directly affect regulatory capital ratios; a policy built on incorrect criteria could result in the firm holding insufficient capital buffers or reporting inaccurate ratios to MAS. Regulatory consequences under MAS's supervisory framework can include directed capital add-ons, formal undertakings, and public enforcement action — consequences entirely disproportionate to the ease with which the original AI error could have been avoided by verifying the source text.

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