Your AI Twin trained on your proprietary models, your risk frameworks, your regulatory obligations — delivering suitability-grade reasoning with full audit traceability. No hallucination by design.
Why Generic AI Is a Risk in Financial Services
Asset managers, advisors, and compliance teams operate under relentless regulatory pressure — MiFID II, CONSOB, ESG/SFDR, Basel III — all evolving simultaneously. Generic AI tools treat finance as a general knowledge problem. Financial services demand auditable, personalized reasoning.
MiFID II suitability requirements, SFDR sustainability disclosures, CONSOB communications, AIFMD obligations — they evolve in parallel and interact in complex ways. No human team can track the cross-impact of all these on every portfolio, product, and client. A missed regulatory update means sanctions, not just inefficiency.
An advisor can't just recommend a product — they must demonstrate why it fits this specific client, given their risk profile, investment horizon, ESG preferences, and existing positions. Generic AI gives generic answers. Regulators demand personalized, documented justification.
A senior Portfolio Manager's methodology — how they evaluate sectors, which signals they weight, their risk instincts developed over decades — lives entirely in their head. When they leave, years of alpha-generating insight disappear overnight. No generic tool captures proprietary investment methodology.
Markets move in milliseconds, but compliance requires documentation and audit trails for every decision. The gap between "I need to act now" and "I need to document why" creates real business risk. Generic AI is either fast but undocumented, or compliant but useless.
Financial services don't need another market news aggregator with a chat interface.
They need an AI that reasons like your best analyst — trained on your methodology, compliant by design, auditable at every step.
Four Layers of Intelligence, Built for Financial Precision
Define the role, specialization, regulatory jurisdiction, and analytical approach. Your Twin becomes a portfolio manager, a compliance officer, a credit analyst, or a wealth advisor — with the rigor and precision your clients and regulators demand.
Upload your proprietary investment methodologies, IPS documents, regulatory frameworks, portfolio guidelines, and historical research. The Twin knows your firm's entire institutional intelligence — and critically, knows what falls outside its verified knowledge base.
The Twin learns your reporting style — your analytical structure, your way of presenting risk assessments, your format for client communications. Investment reports, factsheets, and board presentations read as if your best analyst wrote them.
This is where PRISM transforms investment management. The Twin doesn't just retrieve market data — it cross-references proposed allocations against client risk profiles, regulatory limits, your firm's internal guidelines, and current market conditions to deliver suitability-grade recommendations with full audit trails.
Single-Tenant Use Cases
Even a single desk, advisory team, or boutique firm benefits from PRISM's financial reasoning. No enterprise-wide deployment required — just your methodology, your data, your Twin.
The Twin analyzes markets through the lens of your proprietary methodology — not generic commentary. Sector evaluations, company assessments, and thematic research structured around the signals and frameworks your team actually uses.
Cross-references the client's risk profile, IPS constraints, investment horizon, ESG preferences, and current portfolio against any proposed recommendation — delivering MiFID II–ready justification with full documentation.
Continuous assessment of portfolio exposures against internal limits, regulatory thresholds, and evolving market conditions. Not a static dashboard — reasoning that connects position changes to risk implications in real time.
Tracks MiFID II, CONSOB communications, ESG/SFDR updates, and AIFMD changes — then reasons about what impacts your specific portfolios, processes, and client relationships. Not a news feed; an impact analysis engine.
Market analysis contextualized with your institutional view — not generic news summaries. The Twin weighs market signals against your firm's positioning, open trades, and investment thesis to surface what actually matters for your decisions.
Client reports, factsheets, board presentations, and regulatory filings — all generated in your firm's established format and voice. Every output is review-ready, properly sourced, and aligned with your compliance requirements.
When Multiple Financial Twins Work Together
In asset management firms, banks, and insurance companies, PRISM's true power emerges: specialized Twins in portfolio management, risk, compliance, research, and distribution share reasoning across departmental boundaries — catching conflicts, validating decisions, and accelerating workflows.
When a PM proposes an allocation change, the Risk Twin doesn't just check a static limit — it runs the proposal through VaR models, concentration rules, stress scenarios, and regulatory thresholds simultaneously, delivering a unified risk assessment before the trade is placed.
Proposes rotating 5% from Euro IG credit to European high yield to capture spread compression
Risk Twin: HY allocation would reach 18% (limit 20%), but combined with existing EM debt, sub-IG exposure hits 31% (limit 30%)
Recommends reducing EM debt by 2% first, then executing HY rotation — keeps all limits compliant with 1.5% buffer
Impact: Allocation change executed same-day with pre-validated risk compliance, instead of a 48-hour back-and-forth between PM desk and risk team. No limit breach. Full audit trail for the investment committee.
Before a financial advisor presents a recommendation to a client, the Compliance Twin pre-checks it against MiFID II suitability rules, CONSOB guidance, ESG classification requirements, and the client's specific profile — the recommendation goes out already validated.
Advisor prepares recommendation: multi-asset ESG fund for conservative client with 10Y horizon
Compliance Twin checks: MiFID II suitability ✓, ESG Article 8 alignment ✓, but product cost (TER 1.8%) exceeds firm's value-for-money threshold for conservative profiles
Suggests lower-cost alternative (TER 0.9%) from approved list with equivalent ESG score — suitability documentation auto-generated
Impact: Every client recommendation leaves the firm pre-validated for MiFID II suitability, cost appropriateness, and ESG alignment. Compliance review time reduced from 2 days to instant. Zero post-sale remediation risk.
The Research Twin produces a deep market insight. The Distribution Twin automatically reformats it for three different audiences — institutional clients, retail advisory networks, and regulatory filings — same analysis, three outputs, consistent messaging, zero duplication of effort.
Produces Q1 European equity outlook: 12-page institutional-grade analysis with sector views and conviction calls
Distribution Twin adapts: complexity level, disclosure requirements, and format for each audience segment
Institutional report (full) + Advisor briefing (2-page summary) + Client newsletter (plain language) — all compliant
Impact: One research effort, three distribution channels, zero inconsistencies. Time-to-market for investment insights reduced from 5 days to same-day. All outputs pre-cleared for regulatory compliance.
Built for Financial Services' Most Demanding Regulations
Every recommendation generated by PRISM includes the reasoning chain required by MiFID II suitability obligations — client profile match, risk assessment, cost justification, and product appropriateness. Built for the regulation, not retrofitted.
Native awareness of CONSOB communications, guidelines, and enforcement priorities. The Twin tracks updates relevant to your activities and flags compliance implications before they become findings in an inspection.
Full support for SFDR classification (Article 6, 8, 9), PAI reporting, and EU Taxonomy alignment. The Twin ensures ESG claims in your communications match actual portfolio characteristics — preventing greenwashing risk.
Every investment recommendation, risk assessment, and compliance check is logged with full source traceability — who asked, what sources were consulted, what reasoning was applied, and what output was generated. Inspection-ready at any time.
See the Difference Between Retrieval and Investment Reasoning
"The client wants to increase their emerging market bond allocation to 15%. Should we proceed with this allocation change?"
"Emerging market bonds can offer higher yields but carry additional risks including currency risk, political instability, and liquidity constraints. A 15% allocation is within typical ranges for diversified portfolios."
"Consider the client's risk tolerance, investment horizon, and existing portfolio composition. It may be advisable to diversify across multiple EM regions and favor investment-grade issuers."
❌ No knowledge of this client's specific risk profile or IPS
❌ No awareness of your firm's internal exposure limits
❌ No cross-reference with current regulatory guidance
❌ No consideration of existing portfolio positions
❌ Generic textbook answer — no suitability documentation
Client profile check: Client classified as moderate-conservative (MiFID II risk score 3/7). IPS specifies maximum 10% allocation to emerging markets across all asset classes. Current EM equity exposure: 3.2%.
Source: Client IPS — signed March 2024, last review October 2024Regulatory cross-reference: 3 CONSOB Communications this quarter highlighted EM concentration risk and inadequate diversification in retail portfolios. CONSOB Communication 8/2025 specifically flagged EM bond allocations above 10% in conservative-to-moderate profiles.
Source: CONSOB Communications 6/2025, 7/2025, 8/2025 — uploaded Jan 2025Firm positioning: Your investment committee's Q4 position paper recommends defensive duration management and caution on EM credit spreads given Fed rate uncertainty. Internal guideline: max 8% EM bonds for profiles below risk score 5.
Source: Investment Committee Minutes Q4 2024 + Internal Risk Policy v2.1Market context: Current EM bond spreads at 320bps over US Treasuries — below 5Y average of 380bps. Limited compensation for additional risk at current levels. EM FX volatility elevated (JPM EM FX Vol Index at 11.2 vs 9.8 average).
Source: Market data integration + firm's macro dashboardRecommendation: Proposed 15% exceeds both the client's IPS limit (10%) and your firm's internal guideline (8%). Recommend capping at 8% EM bond allocation, focused on investment-grade sovereign issuers with duration below 5Y. Total EM exposure (equity + bonds) would be 11.2% — within IPS tolerance. Suitability documentation generated.
Source: IPS framework + Internal Risk Policy + CONSOB guidance synthesisIPS with risk profile, investment constraints, and ESG preferences. Last review date and signatory verified. Current portfolio composition referenced.
3 CONSOB Communications from current quarter cited with specific reference numbers. Firm's internal risk policy version and investment committee minutes dated.
Real-time spread levels, FX volatility metrics, and firm macro positioning referenced. All data points traceable to source for MiFID II suitability documentation.
See how PRISM's reasoning engine transforms your investment methodology, risk frameworks, and regulatory obligations into an AI that thinks like your most experienced analyst — deployed on your infrastructure.
Request a Demo