More than two-thirds of UK financial services firms are planning hires over the next year as they gear up for new regulations, but a skills shortage means competition is growing, according to a London-based recruiter.

Hays Financial Markets surveyed around 900 workers and employers in the City and the rest of the UK, and found that 68% of firms plan to recruit staff over the next 12 months while 56% of employees expect to change jobs.