Hedge funds battle for compliance professionals

Just as a new study suggests European hedge funds are facing more scrutiny from regulatory authorities, one recruiter says funds are finding it increasingly difficult to recruit compliance staff.

"Hedge funds are increasingly having to compete with investment banks and institutional fund managers for new staff," says Fergus Hooley, head of compliance at recruitment firm Joslin Rowe. "The situation in these sectors is chronic - most big banks and fund managers are looking for compliance expertise."

Banks and institutional managers are increasingly prepared to make generous counter-offers to prevent valuable compliance talent defecting to hedge funds, says Hooley. "We've seen counter-offers of 60% or more," he adds.

Hedge funds have been adding compliance staff for the past few years, with many larger ones now having compliance departments in-house. Hooley says small and mid-sized funds are also looking at adding an in-house capability.

A survey from PricewaterhouseCoopers, quoted in today's Financial Times, suggests the number of European regulators keeping tabs on hedge funds has increased in the past year, with the UK's Financial Services Authority (FSA) among the most active.