The Financial Services Authority has earmarked up to £10m (€11.2m) to boost staff salaries in key areas in a bid to offer sufficiently competitive compensation to recruit and retain high-quality employees and ensure it has the right mix of skills to carry out its duties this year.

Details of the extra salary pot emerged in the UK financial regulator's annual business plan covering the 12 months from April 1. The FSA is budgeting for a one quarter rise in annual staff costs to £306.4m, compared with £246.4m in the current year, as staff numbers rise by several hundred.