Pursuing its “broken windows” approach to enforcement, the SEC continues to scrutinize hedge fund managers. Accordingly, managers must be ever cognizant of SEC enforcement trends and practical lessons that may be gleaned from them. In connection therewith, the Hedge Fund Law Report recently interviewed Barry P. Schwartz, founding partner of ACA Compliance Group (ACA); Kent Wegrzyn, managing director of ACA; and Mark Borrelli, a partner at Sidley Austin. This article, the first in a two-part series, sets forth the participants’ thoughts with respect to the SEC’s broken windows approach, conflicts of interest and allocation of fees and expenses. In the second installment, the interviewees will discuss compliance resources, chief compliance officer liability and technology. On Thursday, October 1, 2015, from 11:00 a.m. to 12:00 p.m. EDT, Schwartz, Wegrzyn and Borrelli will expand on the topics in this series – as well as other issues that affect hedge fund managers – in a webcast entitled “What Hedge Fund Managers Need to Know about SEC Enforcement Trends,” which will be moderated by William V. de Cordova, Editor-in-Chief of the HFLR. To register for the webinar, click here. For more from ACA, see “ACA Compliance Professionals and SEC Veteran John H. Walsh Share Insights on SEC Priorities for 2015,” Hedge Fund Law Report, Vol. 8, No 16 (Apr. 23, 2015); and “ACA Compliance Group Clarifies Misconceptions Commonly Held by Fund Managers with Respect to Cybersecurity,” Hedge Fund Law Report, Vol. 8, No. 15 (Apr. 16, 2015).