This is the second article in a two-part series covering ALM’s inaugural Alternative Investment General Counsel Summit in New York – an event at which law firm partners, in-house counsel and regulators discussed best practices on legal issues faced by hedge fund managers.  The first article addressed conflicts of interest raised by dual registration and valuation; the constituent elements of a culture of compliance; the interaction between compensation structures and regulatory developments; AIFMD compliance and timing; presence exam survival strategies; and the role of risk alerts in refining a compliance program.  This article discusses effective responses to regulatory audits and examinations; insider trading; political intelligence; and expert networks.  See also “ALM’s 7th Annual Hedge Fund General Counsel Summit Addresses Strategies for Handling Government Investigations, Challenges for CCOs, Distressed Debt Investing, OTC Derivatives Reforms, Insider Trading Best Practices, the JOBS Act, AIFMD and Activist Investing (Part Three of Three),” Hedge Fund Law Report, Vol. 6, No. 47 (Dec. 12, 2013).