As it pursues its “broken windows” approach to enforcement, the SEC has filed a record number of actions against hedge fund managers and investment advisers. Faced with this increased regulatory scrutiny, managers – both emerging and established – need to be cognizant of and prepared for aggressive inspection by regulators, as well as possible enforcement action. Among other topics, speakers at the annual Sadis & Goldberg Alternative Investment Seminar addressed the issue of increased regulatory scrutiny and how hedge fund managers can prepare for SEC examinations and investigations. This article summarizes the salient points made during the discussion. For more from Sadis & Goldberg, see “Practitioners Discuss U.S. and Canadian Shareholder Activism and Activist Tools” (Dec. 4, 2014); and “Tax Efficient Hedge Fund Structuring in Anticipation of the New 3.8% Surtax on Net Investment Income and Proposals to Limit Individuals’ Tax Deductions” (Oct. 18, 2012).