Job vacancy: Head of legal and compliance, hedge fund

The editorial team of eFinancialCareers.com analyses a current job vacancy that looks significant, intriguing or otherwise of interest.Head of Legal and Compliance, hedge fund.

As fast as some hedge funds are closing down, others are setting up in business. The sector is one of the few buoyant areas of the job market and is perfect territory for anyone looking for adventure.

This is just as true for lawyers as for the traders at the sharp end of the business.

Morgan McKinley, a search firm which has advertised for a head of legal and compliance for a substantial hedge fund, said cautious types need not apply.

'The firm is just six months old and yes, taking a job in a new hedge fund is a risk,' said Simon Tuke-Hastings, a Morgan Mckinley consultant. 'The advantages are that the financial rewards can grow very quickly and in a role like this you are in charge of what you do.

'It's perfect for someone from a large firm who wants more responsibility.'

The risks are clear enough. About 400 of the world's estimated 6,000 hedge funds closed in 2002, according to the consultancy Tremont Advisers. It has estimated that a further 1,000 could close in 2003.

The advertised job is in London and will probably go to a lawyer with an investment bank background and at least five years experience, Tuke-Hastings said. Someone from a law firm could be suitable, but only if they already understand the kind of trading products they would be overseeing.

Salary in the first year will be 75,000 to 90,000 and total compensation between 95,000 and 120,000. In the second year it could be much more.

Lawyers at investment banks earn far lower bonuses than front office staff. But some hedge funds give their employees a share of profits, making potential earnings much higher.

This hedge fund would probably not hire anyone who had been made redundant, Tuke-Hastings said. 'The firm was set up by successful traders from a bulge bracket firm and they only want the best.'

The role involves everything from negotiating trading documents for credit lines to reviewing terms of default payment, as well as being compliance officer and money-laundering reporting officer.

The new regulatory regime introduced by the Financial Services Authority in the past 18 months makes the compliance role particularly significant - especially in the creative environment of a hedge fund.

A strong personality would be needed. 'It may involve saying 'no' to some very enthusiastic people pushing hard to do a particular trade,' said Tuke-Hastings. 'Not everyone is good at that.'

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