Where AI fails.

ASIC wins Federal Court case over AI-assisted financial advice platform cyber failures — landmark precedent

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.