A recent article describes the elements and potential applications and interpretations of the SEC’s recently-promulgated Rule 206(4)-8, the antifraud rule specifically targeted at hedge fund managers. The release accompanying the rule contained a controversial suggestion that negligence by an adviser might suffice to prove a violation of the antifraud rule, which many securities lawyers viewed as a downward departure from the usual scienter standard for fraud. The article contains a productive discussion on how the “negligent fraudulent conduct” standard may be reconciled with traditional antifraud jurisprudence, including caselaw under Rule 10b-5.