With 2013 behind us, our Financial Services department has noticed a consistent trend from 2013 to 2014: a large skills gap in the hedge fund compliance sector.

Many of our hedge fund clients are reporting a high demand for skilled and experienced compliance professionals, but the demand outweighs the supply. Many candidates, though highly capable, do not yet have the extensive experience required of some of the higher-level roles. So if you’re looking for the next step in your career as a finance professional, consider getting a head-start on being a prime candidate for these opportunities by taking the step into compliance and familiarizing yourself with the responsibilities and skills required of the field.

The gap can mostly be contributed to the circumstances surrounding the U.S. Securities and Exchange Commission’s (SEC) decision to require all hedge funds to register with them in 2012. Prior to the change, not many hedge funds had a need for compliance specialists; as a result, only a small percentage of finance professionals chose it as a viable route for their career. Once all hedge funds were required to register, the demand for the small pool of compliance candidates skyrocketed, and even today casts a large shadow over the still underpopulated niche.

“Many of our hedge fund clients need experienced compliance professionals, but few candidates have that many years of experience,” says Stephanie Tancredi, Director of The Execu|Search Group’s Financial Services division. “It’s hard to find someone who has 5-6 years of experience when, only three years ago, the need for professionals with such knowledge was scarce. As a result, those who do have experience didn’t gain it organically—instead, many were in different positions with varying responsibilities and simply took on as many compliance duties as they could.”

To satisfy their needs, many hedge funds have begun hiring compliance professionals out of banks and other organizations, but unfortunately, those professionals don’t have experience with the same regulations. The need for those with hedge fund-specific compliance skills is rapidly increasing and transforming, making the field highly specialized. In order to gain the correct skills and experience needed to thrive in it, you have a few options: step back into a more entry-level role, take one of the educational programs now being offered at some organizations, and/or sit in on the compliance team in your current role and ask if you can pick up some tasks.

If you decide to take up compliance, you are best off becoming familiar with hedge fund compliance specifically, especially by obtaining certifications such as Certified Hedge Fund Compliance Expert (CHFCE). However, even with such credentials, it may be necessary to take a step back in your career to start from an earlier point and develop the proper skill set. Though maybe not ideal, it’s beneficial to keep in mind that making such a move could potentially set you up for excellent growth in the future since the pool of candidates with such experience and skills is still so small.