RedHub AI
How the gate works
How the Advisory-Firm AI Exam Defensibility Audit works
This tool grades one advisory firm's AI use against the six exam-surface domains an SEC or state examiner probes. It scores 6 weighted controls into a 0–100 number — then a gate that can only make the verdict worse.
The 6 weighted controls
Three of the six domains are load-bearing — AI in marketing, books & records for AI outputs, and supervision & written policies. A zero on any one of them forces NOT DEFENSIBLE regardless of the score, because each is a finding that draws a deficiency letter on its own. A strong file elsewhere can't cure a missing load-bearing control; clear the zero and the gate releases.
Why: The Northgate branch scores 73 on strong marketing, supervision, vendor, and comms controls — on the number alone it reads OPEN FINDINGS. But its books-and-records domain, a fatal exam domain, is at zero: AI summaries and AI-drafted client comms aren't retained where they function as records. The fatal-domain gate fires, so the verdict is NOT DEFENSIBLE, not OPEN FINDINGS — a polished file elsewhere can't cure a missing load-bearing control.
A high score didn’t save it. The score is context; the gate is the answer — and it names the one thing to fix first. Not legal advice. This is a readiness self-assessment that grades a firm's evidence from your own marks — not a compliance audit, a mock exam, a certification, or an opinion of counsel. It renders no legal ruling, confirms no obligation, and scores no person. Confirm which rules apply to your firm, and every date, with your CCO or a qualified securities attorney.