The FCA is concerned about the loss of key members of staff to industry roles, its annual report reveals.
The report says: “A loss of key people into the industry and staff turnover has been a concern this year.”
High-profile departures include former director of retail Christina Sinclair who left to join Barclays in July 2013, and former director of conduct policy Sheila Nicoll who left in April 2013 to join EY.
As a result of its concerns, the regulator undertook a review of non-pay related benefits which resulted in an increase in the holiday allowance for all staff, with the amount differentiated by grade.
In March, the National Audit Office reported staff turnover at the FCA was 9.7 per cent in 2013, and raised concerns this could damage confidence in the regulator.
FCA staff numbers remain stable, however, at 2,511 in 2013/14, compared to 2,451 for 2012/13. Without stripping out Prudential Regulation Authority staff, the total number of staff for 2012/13 was 3,596.
The FCA has recruited significant numbers of people to its enforcement and financial crime division, which had total staff of 427 in 2013/14, compared to 359 in 2012/13.
Overall staff costs rose from £210m in 2012/13 to £216.6m in 2013/14.
The FCA spent £2.8m on employee exit packages in 2013/14, up from £1.9m in 2012/13.
There were 44 compulsory redundancies, and 12 other agreed departures in 2013/14. This compares to 15 compulsory redundancies and 25 other agreed departures in 2012/13.
In 2013/14, there was one compulsory redundancy which involved an exit package worth more than £200,000, and another redundancy with an exit package of between £150,000 and £200,000.