Prepare Item 105 risk factors on artificial intelligence for a registration statement
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- List verified facts about the registrant's systems, vendors and incidents, and comment on which facts are generic. Write no risk-factor sentence.
- What the lawyer must review
- Item 105 of Regulation S-K (17 CFR § 229.105) requires, where appropriate, a discussion under the caption Risk Factors of the material factors that make an investment speculative or risky. Each risk factor needs a subcaption that describes the risk. Generic risks, if used, go at the end under General Risk Factors. The discussion must explain how each risk affects the registrant or the securities, in plain English. If it is longer than 15 pages, the forepart of the prospectus needs a summary of no more than two pages. In a registration statement the risk factors follow the Item 503 summary, or the cover page if there is no summary. Securities Act § 11 applies to an untrue statement or omission in the registration statement when that part became effective. You write every risk factor that is filed.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and remaining gaps.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.