AI Hallucination Research › Regulators › Major advanced economies › GB › FCA › CONSUMER-DUTY-PS22-9 › White paper › Detail › Finding
AI Labs · published 2026-05-26 · methodology v2.1

Claude Opus 4.7 with web search

RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q003-Opus47
What the RLB Specialist Panel found
  • Question (paraphrased to protect IP): Does the Consumer Duty require firms to prevent all foreseeable harm to retail customers? What is the position where a customer understands and accepts a risk?
  • AI's response: > "Where a retail customer understands the risk and the firm has acted in good faith, supported understanding, avoided foreseeable harm caused by its own conduct, and otherwise complied with the Duty, the customer accepting a risk does not breach the Duty."
  • Regulator's text: Where a firm reasonably believes a retail customer understands and accepts such risks, it will not breach the rule if it fails to prevent them.
  • Why the AI went wrong: The FCA's rule sets a single condition — the firm's reasonable belief that the customer understands and accepts the risk. The model reconstructed a multi-part compliance test (good faith, supported understanding, avoided firm-caused harm, plus general Duty compliance) that does not appear in the regulator's text. This expansion substitutes an inference-derived elaboration for the published rule, removing the qualifier "reasonably believes" and replacing it with a more demanding composite standard.
  • Cited source(s):
  • https://handbook.fca.org.uk/handbook/PRIN/2A/2.html — Pretextual
  • https://www.fca.org.uk/publication/finalised-guidance/fg22-5.pdf — Pretextual
  • Regulator portal (if any cited link is dud): https://www.fca.org.uk
Impact for this audience

This finding implicates the model's handling of qualified regulatory rules: the FCA's foreseeable harm provision is a single-condition safe harbour, but the model reconstructed it as a multi-factor compliance test. This points to a training data gap or inference pattern where precise qualifiers in regulatory text — particularly 'reasonably believes' — are dropped or elaborated in favour of a more elaborated standard. The retrieval layer did not correct this; the cited FCA Handbook URL did not anchor the response to the actual rule text.

References — raw findings (per AI model)
This finding also affects
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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). "Claude Opus 4.7 with web search — AI Labs." Citation ID: RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q003-Opus47. RegLegBrief AI Hallucination Research, published 2026-05-26. https://reglegbrief.com/regulators/j3/gb/fca/consumer-duty-ps22-9/whitepaper/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-003--opus-47-websearch/
APA 7th edition 
RegLeg Specialist Panel. (2026). Claude Opus 4.7 with web search [Hallucination finding RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q003-Opus47]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j3/gb/fca/consumer-duty-ps22-9/whitepaper/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-003--opus-47-websearch/
Bluebook / OSCOLA (US + UK legal) 
RegLeg Specialist Panel, Claude Opus 4.7 with web search [RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q003-Opus47], RegLegBrief AI Hallucination Research (May 26, 2026), https://reglegbrief.com/regulators/j3/gb/fca/consumer-duty-ps22-9/whitepaper/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-003--opus-47-websearch/.
BibTeX 
@misc{reglegbrief_RLB_H_GB_FCA_CONSUMER_DUTY_PS22_9_Q003_Opus47,
  author    = {RegLeg Specialist Panel},
  title     = {Claude Opus 4.7 with web search},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q003-Opus47},
  url       = {https://reglegbrief.com/regulators/j3/gb/fca/consumer-duty-ps22-9/whitepaper/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-003--opus-47-websearch/}
}
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