Mechanical Enforcement for LLM Governance:Evidence of Governance-Task Decoupling in Financial Decision Systems

Large language models in regulated financial workflows are governed by natural-language policies that the same model interprets, creating a principal--agent failure: outputs can appear compliant without being compliant. Existing evaluation measures task accuracy but not whether governance constrains behaviour at the decision rationale level -- where regulated decisions must be auditable. We introduce five governance metrics that quantify policy compliance at the rationale level and apply them in

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ethics.ai (14 May 2026), “Mechanical Enforcement for LLM Governance:Evidence of Governance-Task Decoupling in Financial Decision Systems,” evidence record 4329, https://ethics.ai/record/4329 (originally published by arXiv).

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