To be eligible for top-level positions, you’ll need five to 10 years of experience within an asset management environment (ideally with a compliance focus). Many hedge fund managers prefer to hire compliance professionals with law degrees. Some employers also seek executive-level candidates with regulatory experience at the Financial Industry Regulatory Authority, Securities & Exchange Commission, or other regulatory bodies. Analysts must have prior experience (internship, co-op, work) within an asset management environment.
Successful compliance professionals have strong organizational, analytical skills; excellent judgment; high ethics; intellectual curiosity; the ability to meet tight deadlines; broad knowledge of hedge fund trading strategies; and a deep understanding of federal securities laws (e.g., Investment Advisers Act of 1940, Securities Act of 1933, and the Securities Exchange Act of 1934) and recent legislation (e.g., Dodd-Frank, etc.) that affect the HF industry. They also need top-notch communication and interpersonal skills because they work closely with managing partners and the investor relations and operations departments on various compliance initiatives.