ASIC wins Federal Court case over AI-assisted financial advice platform cyber failures — landmark precedent
RI Advice Group (AMP subsidiary)
What happened
The Federal Court found RI Advice Group failed to implement adequate cyber security controls on its AI-assisted financial advice systems, exposing client data. ASIC v RI Advice Group [2022] FCA 496 was the first case in Australia where ASIC used its financial services licence obligations to hold a firm accountable for inadequate AI and cyber risk management. The decision established that financial licensees have obligations to protect AI systems as part of their licence conditions.
Outcome
Court-enforceable undertaking. RI Advice required to engage independent cyber security consultant. Landmark precedent for AI/cyber obligations.
Cite this incident
https://corporateai.com.au/incidents/ri-advice-2022Source Quick facts
- Date
- 5 May 2022
- Organisation
- RI Advice Group (AMP subsidiary)
- Sector
- Insurance
- Severity
- Medium
- Regulatory bodies
- ASIC
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