A regulated boundary.
THE POSITION
Financial advice is regulated in most jurisdictions. Providing it without authorisation is an offence.
A general AI tool giving investment guidance is not regulated advice, and people may treat it as such.
WHAT THIS MEANS FOR PRACTITIONERS
AI may help you prepare, explain and draft.
It may not determine a recommendation, and anything given to a client is your advice.
WHAT MUST BE YOURS
Suitability assessment The recommendation The reasoning recorded on file
WHAT AI CAN DO SAFELY
Explain a product or concept in plain language Draft a suitability report from your own analysis Summarise documentation Produce client education material, reviewed
WHAT TO NEVER USE
Generated performance figures Generated market data Generated statements about product terms
FOR CONSUMERS READING THIS
A general AI tool is not a financial adviser, is not regulated, and its output carries no protection.
For decisions about your money, speak to a qualified authorised adviser.
WHAT TO CHECK
Your regulator's guidance, which is developing in most jurisdictions.
