AI RESEARCH

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

arXiv CS.CL

ArXi:2605.14744v1 Announce Type: new 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