diff --git a/changelog.d/20250605_155304_rosswilsonblair_valid_missing_entities.md b/changelog.d/20250605_155304_rosswilsonblair_valid_missing_entities.md
new file mode 100644
index 00000000..f0d9619f
--- /dev/null
+++ b/changelog.d/20250605_155304_rosswilsonblair_valid_missing_entities.md
@@ -0,0 +1,47 @@
+<!--
+A new scriv changelog fragment.
+
+Uncomment the section that is right (remove the HTML comment wrapper).
+For top level release notes, leave all the headers commented out.
+-->
+
+<!--
+### Added
+
+- A bullet item for the Added category.
+
+-->
+<!--
+### Changed
+
+
+-->
+### Fixed
+
+- Categorically prevent required entities on metadata files to more closely follow inheritance principle.
+- Also skip required entities on all derivative files.
+
+<!--
+### Deprecated
+
+- A bullet item for the Deprecated category.
+
+-->
+<!--
+### Removed
+
+- A bullet item for the Removed category.
+
+-->
+<!--
+### Security
+
+- A bullet item for the Security category.
+
+-->
+<!--
+### Infrastructure
+
+- A bullet item for the Infrastructure category.
+
+-->
diff --git a/src/validators/filenameValidate.test.ts b/src/validators/filenameValidate.test.ts
index af741e52..aca4fdcc 100644
--- a/src/validators/filenameValidate.test.ts
+++ b/src/validators/filenameValidate.test.ts
@@ -2,7 +2,7 @@ import type { FileTree } from '../types/filetree.ts'
 import type { GenericSchema } from '../types/schema.ts'
 import { assertEquals } from '@std/assert'
 import { BIDSContext } from '../schema/context.ts'
-import { type atRoot, type entityLabelCheck, missingLabel } from './filenameValidate.ts'
+import { type entityLabelCheck, missingLabel } from './filenameValidate.ts'
 import type { BIDSFileDeno } from '../files/deno.ts'
 import { pathToFile } from '../files/filetree.ts'
 import type { FileIgnoreRules } from '../files/ignore.ts'
diff --git a/src/validators/filenameValidate.ts b/src/validators/filenameValidate.ts
index 10338478..da76c08d 100644
--- a/src/validators/filenameValidate.ts
+++ b/src/validators/filenameValidate.ts
@@ -9,7 +9,6 @@ const sidecarExtensions = ['.json', '.tsv', '.bvec', '.bval']
 
 const CHECKS: ContextCheckFunction[] = [
   missingLabel,
-  atRoot,
   entityLabelCheck,
   checkRules,
   reconstructionFailure,
@@ -25,13 +24,6 @@ export async function filenameValidate(
   return Promise.resolve()
 }
 
-export function isAtRoot(context: BIDSContext) {
-  if (context.file.path.split(SEPARATOR_PATTERN).length !== 2) {
-    return false
-  }
-  return true
-}
-
 export async function missingLabel(
   schema: GenericSchema,
   context: BIDSContext,
@@ -57,15 +49,6 @@ export async function missingLabel(
   return Promise.resolve()
 }
 
-export function atRoot(schema: GenericSchema, context: BIDSContext) {
-  /*
-  if (fileIsAtRoot && !sidecarExtensions.includes(context.extension)) {
-    // create issue for data file in root of dataset
-  }
-  */
-  return Promise.resolve()
-}
-
 export function lookupEntityLiteral(name: string, schema: GenericSchema) {
   if (
     schema.objects &&
@@ -203,9 +186,9 @@ function entityRuleIssue(
   const fileEntities = Object.keys(context.entities)
   const ruleEntities = Object.keys(rule.entities).map((key) => lookupEntityLiteral(key, schema))
 
-  // skip required entity checks if file is at root.
-  // No requirements for inherited sidecars at this level.
-  if (!isAtRoot(context)) {
+  // skip required entity checks for 'metadata' per inheritance rules 1 + 2
+  // Also skip for all deriv files.
+  if (!sidecarExtensions.includes(context.extension) && !path.includes('rules.deriv.')) {
     const ruleEntitiesRequired = Object.entries(rule.entities)
       .filter(([_, v]) => v === 'required')
       .map(([k, _]) => lookupEntityLiteral(k, schema))