Rule 206(4)‑8 under the Investment Advisers Act of 1940 is the SEC’s primary anti-fraud tool for investment advisers to pooled investment vehicles. When the SEC adopted it in 2007, then-commissioner Paul S. Atkins unsuccessfully argued that the rule should require that charges be brought only if the SEC could prove intentional or reckless misconduct (i.e., scienter). The other commissioners disagreed and adopted the rule under the lower negligence standard. During Atkins’ current tenure as SEC chair, the Commission appears to be applying Rule 206(4)‑8 in a manner consistent with his preferred scienter-based approach and an increased focus on individual accountability. From April 21, 2025, through June 16, 2026, 15 of the 16 cases reviewed in this article included scienter-based arguments – a stark contrast to previous Commissions. Notably, the only case that did not include scienter-based fraud charges or individual charges involved a firm receiving cooperation credit, suggesting that cooperation-based credit may be essential to avoid both charges. In a guest article, StoneTurn partner Daniel Brinks details the history of Rule 206(4)‑8, analyzes the 16 enforcement actions brought during the specified period of Atkins’ tenure as SEC chair, conducts data analysis of enforcement trends across preceding SEC administrations and forecasts the tenor of SEC enforcement efforts under Atkins going forward. See “What ‘Back to Basics’ Under Chair Atkins Means for SEC’s Division of Enforcement” (Feb. 5, 2026).