---
title: "FSA AI / Model Governance Expectations for Financial Institutions — KYE Protocol™ coverage"
description: "FSA AI / Model Governance Expectations for Financial Institutions coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it."
url: https://kyeprotocol.com/compliance/fsa-guidelines-ai/
lang: en
source: "KYE Protocol"
---

> FSA AI / Model Governance Expectations for Financial Institutions coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it.

FSA AI / Model Governance Expectations for Financial Institutions

# FSA AI / Model Governance Expectations for Financial Institutions — 90% of in-scope requirements covered.

5 requirements · 5 in scope (4 enforced · 1 designed). The 90% is weighted over the in-scope base.

**Source:** Japan Financial Services Agency (FSA) AI Discussion Paper (June 2024) and the model-risk / system-risk-management governance expectations in the FSA's Comprehensive Guidelines for Supervision of financial institutions. KYE™ maps the AI governance, model-risk-management, human-oversight, explainability, and operational-resilience expectations that bind an AI-supported financial action onto runtime evidence.

## By category

| Category | Reqs | Enforced | Designed | Advisory | Deferred | Coverage |
| --- | --- | --- | --- | --- | --- | --- |
| AI governance & accountability | 1 | 1 | 0 | 0 | 0 | **100%** |
| Model risk management | 1 | 1 | 0 | 0 | 0 | **100%** |
| Human oversight | 1 | 1 | 0 | 0 | 0 | **100%** |
| Explainability & customer disclosure | 1 | 1 | 0 | 0 | 0 | **100%** |
| Operational resilience & incident management | 1 | 0 | 1 | 0 | 0 | **50%** |

## Every requirement → the KYE™ artefact that enforces it

| ID | Title | Status | KYE™ enforcement |
| --- | --- | --- | --- |
| `fsa-guidelines-ai.governance-accountability` | FSA AI expectations — establish an AI governance framework with clear accountability for the development, deployment and oversight of AI in financial services | enforced | **audit\_events**: `kye.compliance.attestation.v1`, `kye.purpose.request.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md`, `constitution/00-INDEX.md` |
| `fsa-guidelines-ai.model-risk-management` | FSA AI expectations — manage model risk across the AI lifecycle, including validation, performance monitoring and data-quality controls | enforced 1 unverified citation | **audit\_events**: `kye.risk_assessment.v1`, `kye.resilience.drift.detected.v1` unverified citation **engines**: `internal`, `internal`, `internal` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md` |
| `fsa-guidelines-ai.human-oversight` | FSA AI expectations — maintain meaningful human oversight and the ability to intervene in AI-driven decisions affecting customers | enforced | **audit\_events**: `kye.purpose.admissibility.v1`, `kye.evidence.decision_map.v1` **engines**: `internal` **constitution\_refs**: `constitution/36-GOVERNEDUI.md`, `constitution/12-PURPOSE-PERMISSION.md` |
| `fsa-guidelines-ai.explainability-disclosure` | FSA AI expectations — ensure AI-driven decisions affecting customers are explainable and that customers are appropriately informed | enforced | **audit\_events**: `kye.evidence.decision_map.v1`, `kye.evidence.pack.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md` |
| `fsa-guidelines-ai.operational-resilience-incident` | FSA AI expectations — manage operational resilience and report material system / AI incidents to the FSA in a timely manner | designed | **audit\_events**: `kye.signal.incident.opened.v1`, `kye.compliance.attestation.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md`, `constitution/51-NO-SPOF.md` |

Canonical KYE™ surfaces referenced on this page: [KYE Protocol™](https://kyeprotocol.com/).