WEST PALM BEACH, FL (www.hedgeco.net) – Since the SEC�s introduction and passage of hedge fund laws, in addition to the massive growth which has been occurring in the hedge fund industry, lawyersspecializing in hedge fund areas have seen the demand for their services increase as hedge fund managers struggle to meet the looming SEC�s deadline which is drawing nearer by the day. The new SEClaws will take effect early next year, by February 1, and so far, about 55 percent of the U.S. based hedge fund managers have complied with the new laws.

Many hedge fund managers are still struggling to set up their systems for compliance. Jonathan Wainwright, partner at Cadwalader, Wickersham & Taft LLP, whose practice focuses on investment funds said, “We are working as hard as we can to keep up with the growth of our hedge fund clients – we have between 15 and 20 people dealing with these clients and are trying to recruit more at all levels.” He added, �We are also competing with our own clients for the best legal talent.�

Wainwright also said, “I was attracted by the idea of becoming a part of a business, involved in a more entrepreneurial environment, rather than just advising clients.� Dan Kreuter, who runs executive search firm DAK Associates, explained some hedge fund managers who are expanding their in-house compliance capacities may want different levels of legal advice, but such degree may also depend on the complexity of the business of the funds in question.

Kreuter added, “Clients come to us wanting compliance relief, and we help define exactly what they need to help in their business. Some don’t need a chief compliance officer, but someone who can take on additional duties beyond compliance on the legal, IT, and operational side of the business�, he said.

He however warned that hedge fund operators should be careful in hiring help, because it is not every one with �compliance� on their resume actually qualify for such work. Other aspects of hedge fund manager are also creating demands for compliance officers, particularly in the fund of funds arena, where increasing numbers of institutional managers are investing in hedge fund managers.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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