As part of the transition to the incoming administration of President-Elect Donald J. Trump, many in the hedge fund industry anticipate the potential for a lighter-touch regulatory approach at the SEC. This was the focus of a recent panel discussion hosted by BakerHostetler and featuring Marc Powers and Mark Kornfeld, partners in BakerHostetler’s securities litigation practice; Walter Van Dorn, partner and national leader of the firm’s international securities and capital markets practices; and Michelle Chopper, director of the advisory and consulting practices at Arthur Bell. The key takeaways from the panel are presented in this two-part series. This second article discusses the SEC’s practice of trying contested cases in front of administrative law judges hired by the SEC, evaluates the impact of the Dodd-Frank Act’s whistleblower program on SEC enforcement efforts and provides guidance for managers on navigating a regulatory exam or investigation. The first article addressed the SEC’s renewed interest in compliance with the pay to play rule, the relentless crack down on insider trading and ways technology is giving the SEC an edge in detecting violations. For additional insight from Powers, see “Investment Strategies, Considerations and Uncertainties of Distressed Debt Investments by Hedge Funds” (Apr. 9, 2015); “Chapter 15 of the Bankruptcy Code Presents Litigation Risks and Liability for Creditors, Counterparties, Service Providers and Others Doing Business With Bankrupt Offshore Hedge Funds” (Oct. 3, 2013); and “Five Takeaways for Other Hedge Fund Managers From the SEC’s Record $602 Million Insider Trading Settlement With CR Intrinsic” (Mar. 21, 2013).