On July 30, the Securities and Exchange Commission published proposed guidance regarding the fiduciary responsibilities of boards of directors of registered investment companies with respect to the oversight of investment adviser portfolio trading and related “soft dollar” practices. The proposed guidance addresses the duty to seek best execution and consideration of transaction costs, the use of fund brokerage commissions, the limitations of Section 28(e) of the Securities Exchange Act of 1934 and the fiduciary duties of investment advisers to fund clients. Suggested information to be considered in a board of directors’ review process is provided. The proposed guidance does not impose any new obligation on directors, but is intended to assist in their review of investment advisory agreements under Section 15(c) of the Investment Company Act of 1940 and their ongoing review of investment adviser practices. The comment period for the proposal ends October 1.