A  crackdown on hedge funds announced by European leaders at the weekend could be good news,  say finance recruiters.

EU leaders want  hedge funds be more tightly regulated because they argue they  played a part  in causing the credit crunch.

However, Dev Majithia, director of Emerson Chase City, told Recruiter  that recruiters could turn tighter regulation to their advantage.  “Hedge funds are adept at using the regulatory framework to their advantage by moving into the traditional fund management space and increasing their market share. 

“Recruiters can benefit by helping those hedge funds find those people who can make that transition.”

Fergus Hooley,  associate director of Joslin Rowe’s compliance desk, adds:
“The latest news that the G20 European leaders have agreed for the need for greater hedge fund regulation comes at a very interesting time. Many of these previously lightly regulated hedge funds have been, in part, held responsible for the crisis in the financial markets.

“ Interestingly, in the last six months some of these firms have also made their compliance staff redundant, as a result of diminished profitability. It will be interesting to see whether the hedge fund sector makes the most of an ideal buying opportunity, as there are many outstanding candidates available with proven high-level hedge fund compliance experience.”