Regulators’ failure to retain top staff may undermine industry confidence in the bodies and make them less effective, according to a report published today by the National Audit Office.

The NAO found that 34% of FCA staff in October last year had less than two years' service at the regulator or its predecessor the Financial Services Authority. "This (…) poses a risk that knowledge will be lost within the organisations and impacts on the regulators' capacity to carry out their functions," it said.