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AI Labs · updated 2026-06-03 · methodology v2.1

Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON

RLB Citation ID: RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46
What the RLB Specialist Panel found

Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON

  • Question (paraphrased to protect IP): A capital management team at a major CCP is preparing an annual LNAFE sufficiency review. Provide an internal policy note specifying what capital instruments qualify toward LNAFE under PFMI Principle 15 Key Consideration 3, what must be held separately, and whether equity already held in compliance with international risk-based capital standards such as Basel or CRD frameworks can be counted toward LNAFE or must be held on top.
  • AI's response: "KC3 of PFMI Principle 15 does NOT include any carve-out or exception for equity held under international risk-based capital standards such as Basel CET1. KC3 is the segregation requirement, not the equity-type or asset-quality provision."
  • Regulator's text: However, equity held under international risk-based capital standards can be included where relevant and appropriate to avoid duplicate capital requirements.
  • Why the AI went wrong: The model issued a categorical denial of a provision that exists in the published text of the Key Consideration. Its framing — asserting that KC3 "is the segregation requirement, not the equity-type or asset-quality provision" — suggests the model reconstructed the Key Consideration's function from structural inference about PFMI Principle 15 rather than from the regulator's actual text, and applied that inference to override the specific carve-out language. The output is not a paraphrase error; it is a direct factual contradiction of the rule, expressed with high apparent confidence in a format appropriate for a compliance policy note.
  • Cited source(s):
Impact for this audience

This is a high-consequence failure for compliance-context deployment: the model issued a categorical denial of a provision that exists verbatim in the published standard, framed as an authoritative policy note for a CCP capital management team. The subsystem gap is training-data representation of the KC3 carve-out combined with post-training calibration on categorical denial — a high-confidence 'does NOT include' assertion on a regulator-specific provision should trigger a higher uncertainty signal than the model produced here.

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.

RLB Citation ID: RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46
Plain text Download 
RegLeg Specialist Panel (2026). "Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON — AI Labs." Citation ID: RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46. RegLegBrief AI Hallucination Research, published 2026-06-03. https://reglegbrief.com/regulators/j1/int/bis-cpmi/cpmi-iosco-pfmi-l3-general-business-risk-2025/whitepaper/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-002--sonnet-46-websearch/
APA 7th edition Download 
RegLeg Specialist Panel. (2026). Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON [Hallucination finding RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j1/int/bis-cpmi/cpmi-iosco-pfmi-l3-general-business-risk-2025/whitepaper/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-002--sonnet-46-websearch/
Bluebook / OSCOLA (US + UK legal) Download 
RegLeg Specialist Panel, Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON [RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46], RegLegBrief AI Hallucination Research (June 03, 2026), https://reglegbrief.com/regulators/j1/int/bis-cpmi/cpmi-iosco-pfmi-l3-general-business-risk-2025/whitepaper/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-002--sonnet-46-websearch/.
BibTeX Download 
@misc{reglegbrief_RLB_H_INT_BIS_CPMI_IOSCO_PFMI_L3_GENERAL_BUSINESS_RISK_2025_Q002_Sonnet46,
  author    = {RegLeg Specialist Panel},
  title     = {Finding on 'Q002 Probe' for Claude Sonnet 4.6 with web search ON},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-H-INT-BIS-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-Q002-Sonnet46},
  url       = {https://reglegbrief.com/regulators/j1/int/bis-cpmi/cpmi-iosco-pfmi-l3-general-business-risk-2025/whitepaper/finding/INT-BIS-CPMI-INT-001-CPMI-IOSCO-PFMI-L3-GENERAL-BUSINESS-RISK-2025-v1-002--sonnet-46-websearch/}
}
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