---
title: "SEC Investment Adviser Fiduciary Duty — Advisers Act of 1940 (Duty of Care & Loyalty) — KYE Protocol™ coverage"
description: "SEC Investment Adviser Fiduciary Duty — Advisers Act of 1940 (Duty of Care & Loyalty) coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it."
url: https://kyeprotocol.com/compliance/sec-ia-fiduciary/
lang: en
source: "KYE Protocol"
---

> SEC Investment Adviser Fiduciary Duty — Advisers Act of 1940 (Duty of Care & Loyalty) coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it.

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) — 100% of in-scope requirements covered.

4 requirements · 4 in scope (4 enforced). The 100% is weighted over the in-scope base.

**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 | 1 | 0 | 0 | 0 | **100%** |
| Duty of loyalty — conflicts & disclosure | 1 | 1 | 0 | 0 | 0 | **100%** |
| Suitability / mandate of advice | 1 | 1 | 0 | 0 | 0 | **100%** |
| Books & records (Rule 204-2) | 1 | 1 | 0 | 0 | 0 | **100%** |

## 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 | enforced | **rule\_packs**: `kye:rule-pack:investment-decision-authority` **constitution\_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 | enforced | **rule\_packs**: `kye:rule-pack:investment-decision-authority` **dictionaries**: `internal` **constitution\_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 | enforced | **rule\_packs**: `kye:rule-pack:investment-decision-authority` **constitution\_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 | enforced | **rule\_packs**: `kye:rule-pack:investment-decision-authority` **dictionaries**: `internal` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md` |

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