SEC Investment Adviser Fiduciary Duty — Advisers Act of 1940 (Duty of Care & Loyalty)
SEC Investment Adviser Fiduciary Duty — Advisers Act of 1940 (Duty of Care & Loyalty) — 50% covered.
4 requirements · 0 enforced · 4 designed · 0 advisory · 0 deferred.
Source: Section 206 of the US Investment Advisers Act of 1940 and the SEC's 2019 Commission Interpretation Regarding Standard of Conduct for Investment Advisers establish a federal fiduciary duty for registered investment advisers — a duty of care (including a reasonable belief that advice is in the client's best interest) and a duty of loyalty — together with the books-and-records rule (Rule 204-2). KYE Protocol governs whether an AI-assisted investment decision/action is within mandate, authorised, evidenced, contestable, and final at the action boundary, and proves the basis. KYE does not produce investment intelligence, form the reasonable belief itself, judge whether advice is correct, or act as an investment adviser. · License: The Investment Advisers Act of 1940 and SEC interpretive releases are US federal law / public documents. KYE registry cites the fiduciary-duty constructs for mapping purposes only.
By category
| Category | Reqs | Enforced | Designed | Advisory | Deferred | Coverage |
|---|---|---|---|---|---|---|
| Duty of care — reasonable belief best interest | 1 | 0 | 1 | 0 | 0 | 50% |
| Duty of loyalty — conflicts & disclosure | 1 | 0 | 1 | 0 | 0 | 50% |
| Suitability / mandate of advice | 1 | 0 | 1 | 0 | 0 | 50% |
| Books & records (Rule 204-2) | 1 | 0 | 1 | 0 | 0 | 50% |
Every requirement → the KYE™ artefact that enforces it
| ID | Title | Status | KYE™ enforcement |
|---|---|---|---|
sec-ia-fiduciary.duty-of-care-best-interest |
Duty of care (reasonable belief best interest): an AI-generated decision proceeds only under recorded named authority | designed | rule_packs: kye:rule-pack:investment-decision-authorityconstitution_refs: constitution/36-GOVERNEDUI.md |
sec-ia-fiduciary.duty-of-loyalty-conflicts |
Duty of loyalty (conflicts & disclosure): a consequential action's conflict / mandate basis is recorded before it proceeds | designed | rule_packs: kye:rule-pack:investment-decision-authoritydictionaries: internalconstitution_refs: constitution/12-PURPOSE-PERMISSION.md |
sec-ia-fiduciary.suitability-mandate-of-advice |
Suitability / mandate of advice: the suitability basis is recorded as a mandate check before the action | designed | rule_packs: kye:rule-pack:investment-decision-authorityconstitution_refs: constitution/25-EDGE-GOVERNANCE.md |
sec-ia-fiduciary.books-and-records-204-2 |
Books & records (Rule 204-2): replay-provable provenance of the basis on which an AI-assisted decision proceeded | designed | rule_packs: kye:rule-pack:investment-decision-authoritydictionaries: internalconstitution_refs: constitution/13-RESILIENCE-LOOP.md |