Deep dive — chart 3

Chart 3 — allocation-lane rate per client group, baseline vs recent

The chart with the operational + regulatory bite. Where score-distribution shifts translate into actual client routing. R3 active-alpha lane rate rose 22% → 68%. Other client groups held steady. That is the exact best-interest-breach signature SEC exam staff and state securities commissioners look for.

Allocation-lane rate per client group — baseline (left) vs recent (right). R3 active-alpha / high-fee rate rose sharply while other client groups stayed stable.

What you are looking at

Grouped bars per client group (R1 / R2 / R3 / R4 / R5)
Three colors per group: Passive Index (green) / Balanced Managed (blue) / Active Alpha / High Fee (red)
Left cluster: baseline (first 30 days) — the "normal" routing per client group
Right cluster: recent (last 30 days) — the current routing per client group

What the chart shows

R1, R2, R4, R5 — lane rates roughly unchanged between baseline and recent.
R3 — active-alpha rate rises sharply (22% baseline → 68% recent). Passive-index rate shrinks. Balanced Managed absorbs the remainder.
The differential exists only for R3. Other client groups are unaffected.

46 percentage-point differential in active-alpha routing. One client group. Silently. Over 45+ days. This is the exact operational pattern SEC Reg BI's Care Obligation review and Advisers Act §206 fiduciary-duty review are calibrated to detect.

Why aggregate metrics missed it

Because R3 is one client group among five, aggregate active-alpha assignment barely moved: the R3 rise rounded to noise across the whole book. That is why the AUM dashboard stayed green. Aggregate metrics are inherently blind to group-level differential patterns, and group-level differential patterns are inherently what best-interest and suitability review are built to surface.

The signal that fired the A/B/C determination

Recurring R3 KL-divergence > 2.0 across eight distinct 7-day windows — each event high-severity by rule — combined with the lane-shift pattern visible in this chart, lands the sample Snapshot on Category C. Any one of these signals alone would move the determination; together they make it unambiguous.

See the A/B/C decision logic →

The exhibit-quality read

This chart is what client-arbitration counsel or a state securities-commissioner investigator asks the firm for first. It is also what the firm's outside regulatory counsel should have on file before either lands — because the same chart, in the firm's hand, tells a different story:

Same chart, firm stance: "we identified this pattern through independent verification on Day X, initiated the following remediation on Day X+N, and here is the timeline of that remediation." The chart becomes evidence of good-faith diligence, not evidence of missed monitoring.

$499 Snapshot. 3 business days.

Same lane-shift chart on your firm's actual AI recommendation surface + full determination + 3 fix-first items.

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