It is important for investment advisers to understand how the SEC expects them to fulfil their fiduciary duties in order to mitigate the risk of adverse client or regulatory action. The SEC recently issued a release seeking comment on the agency’s proposed interpretation of an investment adviser’s fiduciary duty and its proposal to enhance regulation of advisers through, among other things, licensing, account statement delivery and financial responsibility requirements. This article summarizes the key takeaways from the release. See “What Precisely Is ‘Fiduciary Duty’ in the Hedge Fund Context, and to Whom Is It Owed?” (Jul. 23, 2009).