BiasMix-Finance: Post-Generation KYC Guardrails for LLM Portfolio Advice
On the map: LLM safety and security → Safety alignment, refusal and guardrails
Abstract (arXiv)
Large language models (LLMs) can generate plausible-sounding ETF portfolios while silently violating basic KYC-style constraints on risk, fees, and diversification. This is especially problematic in agentic multi-turn advisory systems, where each draft recommendation can become an action unless guarded by an auditable enforcement layer. We study a model-agnostic, asset-agnostic post-generation guardrail pipeline: (i) enforce a strict JSON allocation schema, (ii) validate allocations against numeric caps, and (iii) when violations occur, deterministically project the output to the nearest feasible portfolio via a convex quadratic program (QCQP). We introduce BiasMix-Finance (Mini), a compact stress-test benchmark for constrained decision-making under biased LLM generations, with a 16-ETF universe, three investor profiles, and eight bias prompts. Across three models and three inference modes (direct, critique, self-consistency), first-pass generations violate at least one cap in 47.6-85.7% of test cases (67.2% pooled), but the convex projection layer reduces final feasibility violations to 0% while requiring only a small correction distance (test pooled median D=||w*-w0||_2=0.066), indicating that the guardrail typically preserves the intent of the original allocation. We report violation rates and correction distances with confidence intervals, and paired model comparisons with multiple-testing correction. To support reproducibility, we release the dataset, prompts, caps, and code in our public GitHub repository.
Key facts. No citing papers in the map yet (data through 7 Oct 2026). Placed in Safety alignment, refusal and guardrails, one of 12 directions in LLM safety and security. Builds on 17 of its 35 references that are in the map. First posted on arXiv 14 Aug 2026.
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17 of 35 references.
References · 17
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5 more
- 2023NeMo Guardrails: A Toolkit for Controllable and Safe LLM Applications with Programmable Railscited by 347
- 2023FinGPT: Open-Source Financial Large Language Modelscited by 244
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