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IOSCO Supervisory Toolkit for AI Use in Capital Markets

IOSCO's supervisory toolkit (FR/02/2026) providing structured assessment tables for AI governance, third-party risk, disclosure, and recordkeeping in capital markets.

Table 2: AI Governance & Oversight

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 2: Model Risk Management

Risks

AIR-OP-019Data Quality and Drift AIR-OP-004Hallucination and Inaccurate Outputs AIR-OP-005Foundation Model Versioning AIR-OP-006Non-Deterministic Behaviour

Table 2: Investment Advice & Suitability

Risks

AIR-OP-014Inadequate System Alignment AIR-OP-016Bias and Discrimination AIR-OP-018Model Overreach / Expanded Use

Table 2: Market Risks

Risks

AIR-OP-006Non-Deterministic Behaviour

Table 2: System Reliability & Business Continuity Planning

Risks

AIR-OP-007Availability of Foundational Model

Mitigations

AIR-PREV-008Quality of Service (QoS) and DDoS Prevention for AI Systems AIR-DET-009AI System Alerting and Denial of Wallet (DoW) / Spend Monitoring

Table 2: Cybersecurity & Data Privacy/Protection

Risks

AIR-SEC-010Prompt Injection AIR-RC-001Information Leaked To Hosted Model AIR-SEC-026MCP Server Supply Chain Compromise AIR-SEC-027Agent State Persistence Poisoning AIR-SEC-029Agent-Mediated Credential Discovery and Harvesting AIR-SEC-002Information Leaked to Vector Store AIR-SEC-008Tampering With the Foundational Model AIR-SEC-009Data Poisoning

Mitigations

AIR-PREV-012Role-Based Access Control for AI Data AIR-PREV-014Encryption of AI Data at Rest AIR-DET-016Preserving Source Data Access Controls in AI Systems AIR-PREV-017AI Firewall Implementation and Management AIR-DET-001AI Data Leakage Prevention and Detection AIR-PREV-022Multi-Agent Isolation and Segmentation AIR-PREV-023Agentic System Credential Protection Framework AIR-PREV-003User/App/Model Firewalling/Filtering

Table 2: Outsourcing & Third-Party Dependencies

Risks

AIR-OP-007Availability of Foundational Model

Table 2: Disclosure & Transparency

Risks

AIR-OP-017Lack of Explainability AIR-OP-020Reputational Risk

Table 2: Recordkeeping & Audit Trail

Mitigations

AIR-DET-013Providing Citations and Source Traceability for AI-Generated Information AIR-DET-021Agent Decision Audit and Explainability AIR-DET-004AI System Observability

Table 3.1: Oversight from Board or Governing Body

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 3.2: Senior Management Responsibilities

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 3.3: AI Risk Management Systems, Policies and Procedures

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 3.4: Data Governance

Risks

AIR-OP-019Data Quality and Drift AIR-RC-001Information Leaked To Hosted Model AIR-RC-023Intellectual Property (IP) and Copyright AIR-SEC-002Information Leaked to Vector Store AIR-SEC-009Data Poisoning

Mitigations

AIR-PREV-012Role-Based Access Control for AI Data AIR-DET-016Preserving Source Data Access Controls in AI Systems AIR-PREV-002Data Filtering From External Knowledge Bases AIR-PREV-006Data Quality & Classification/Sensitivity

Table 3.5: Risk Management of Advanced AI Systems

Risks

AIR-SEC-010Prompt Injection AIR-OP-014Inadequate System Alignment AIR-OP-018Model Overreach / Expanded Use AIR-SEC-024Agent Action Authorization Bypass AIR-SEC-025Tool Chain Manipulation and Injection AIR-SEC-026MCP Server Supply Chain Compromise AIR-SEC-027Agent State Persistence Poisoning AIR-OP-028Multi-Agent Trust Boundary Violations AIR-SEC-029Agent-Mediated Credential Discovery and Harvesting AIR-OP-006Non-Deterministic Behaviour

Mitigations

AIR-PREV-018Agent Authority Least Privilege Framework AIR-PREV-019Tool Chain Validation and Sanitization AIR-PREV-022Multi-Agent Isolation and Segmentation AIR-PREV-023Agentic System Credential Protection Framework

Table 3.6: AI Model Validation, Testing and Monitoring

Risks

AIR-OP-014Inadequate System Alignment AIR-OP-016Bias and Discrimination AIR-OP-019Data Quality and Drift AIR-OP-004Hallucination and Inaccurate Outputs AIR-OP-005Foundation Model Versioning AIR-OP-006Non-Deterministic Behaviour

Mitigations

AIR-PREV-010AI Model Version Pinning AIR-DET-011Human Feedback Loop for AI Systems AIR-DET-015Using Large Language Models for Automated Evaluation (LLM-as-a-Judge) AIR-PREV-005System Acceptance Testing AIR-PREV-006Data Quality & Classification/Sensitivity

Table 3.7: Controls and Human Oversight of AI Systems

Risks

AIR-OP-017Lack of Explainability AIR-OP-018Model Overreach / Expanded Use AIR-SEC-024Agent Action Authorization Bypass AIR-SEC-025Tool Chain Manipulation and Injection AIR-OP-028Multi-Agent Trust Boundary Violations

Mitigations

AIR-DET-011Human Feedback Loop for AI Systems AIR-PREV-012Role-Based Access Control for AI Data AIR-PREV-018Agent Authority Least Privilege Framework AIR-DET-021Agent Decision Audit and Explainability AIR-PREV-003User/App/Model Firewalling/Filtering

Table 4.1: Assessment of Risk-Proportionate Controls

Mitigations

AIR-PREV-005System Acceptance Testing AIR-PREV-007Legal and Contractual Frameworks for AI Systems

Table 4.2: Transparency Measures

Risks

AIR-OP-017Lack of Explainability

Table 4.3: Fairness Due Diligence Assessment

Risks

AIR-OP-016Bias and Discrimination

Table 4.4: Supply Chain Risk Assessment

Risks

AIR-RC-023Intellectual Property (IP) and Copyright AIR-SEC-026MCP Server Supply Chain Compromise AIR-SEC-008Tampering With the Foundational Model AIR-SEC-009Data Poisoning

Mitigations

AIR-PREV-019Tool Chain Validation and Sanitization AIR-PREV-020MCP Server Security Governance AIR-PREV-006Data Quality & Classification/Sensitivity

Table 4.5: Concentration Risk

Risks

AIR-OP-007Availability of Foundational Model

Table 4.6: Contingency Planning

Risks

AIR-OP-007Availability of Foundational Model

Mitigations

AIR-PREV-008Quality of Service (QoS) and DDoS Prevention for AI Systems

Table 4.7: Legal Framework and Accountability

Risks

AIR-RC-022Regulatory Compliance and Oversight

Mitigations

AIR-PREV-007Legal and Contractual Frameworks for AI Systems

Table 4.9: Use of Complex AI Products

Risks

AIR-OP-018Model Overreach / Expanded Use

Table 5.1: Disclosure of AI Use in Products and Services to End-Users

Risks

AIR-OP-017Lack of Explainability

Mitigations

AIR-DET-013Providing Citations and Source Traceability for AI-Generated Information

Table 5.2: AI Governance and Strategy Disclosures

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 5.4: Identifying Misleading Claims

Risks

AIR-OP-020Reputational Risk

Table 6.1: Documentation of AI Lifecycle Oversight

Mitigations

AIR-DET-021Agent Decision Audit and Explainability AIR-DET-004AI System Observability

Table 6.3: Documentation of AI-Generated Outcomes

Mitigations

AIR-DET-011Human Feedback Loop for AI Systems AIR-DET-013Providing Citations and Source Traceability for AI-Generated Information AIR-DET-021Agent Decision Audit and Explainability AIR-DET-004AI System Observability

Table 6.4: Documentation of Explainability of AI Outputs

Risks

AIR-OP-017Lack of Explainability

Mitigations

AIR-DET-013Providing Citations and Source Traceability for AI-Generated Information AIR-DET-021Agent Decision Audit and Explainability

Table 6.5: Records on Incidents Relating to AI Products or Services

Risks

AIR-SEC-027Agent State Persistence Poisoning AIR-OP-028Multi-Agent Trust Boundary Violations AIR-SEC-029Agent-Mediated Credential Discovery and Harvesting

Mitigations

AIR-DET-021Agent Decision Audit and Explainability AIR-DET-004AI System Observability AIR-DET-009AI System Alerting and Denial of Wallet (DoW) / Spend Monitoring

Table 6.6: Reporting

Risks

AIR-RC-022Regulatory Compliance and Oversight

Table 7: AI Adoption Indicators

Mitigations

AIR-DET-004AI System Observability

Table 7: Nature and Use Cases of AI Systems

Mitigations

AIR-DET-004AI System Observability

Table 7: Third-Party Dependencies and Concentrations

Mitigations

AIR-PREV-007Legal and Contractual Frameworks for AI Systems

Table 7: AI System Performance Indicators

Mitigations

AIR-DET-004AI System Observability AIR-PREV-008Quality of Service (QoS) and DDoS Prevention for AI Systems AIR-DET-009AI System Alerting and Denial of Wallet (DoW) / Spend Monitoring