Almost one in six staff left the Prudential Regulation Authority last year, amid concerns that the regulator lacks the skilled staff to properly understand the firms they are supervising.
Figures revealed under the Freedom of Information Act, submitted by The Daily Telegraph, reveal staff turnover at the PRA, which is part of the Bank of England, hit 15.4 per cent in the year to November. This is more than 50 per cent above the 7 to 10 per cent range the regulator has deemed as acceptable.
Excluding contract workers, the turnover rate was 12.5 per cent.
As banks and insurers grow their internal compliance teams to handle an increasingly complex regulatory regime, many of the top PRA staff are being poached into higher-paying roles within the private sector.
Further data shows PRA employees worked 3,952 hours of overtime in the eight months from March to November, averaging 494 hours a month – almost double the 263 hours overtime recorded in the year to March.
Separately, figures show staff turnover at the FCA fell from 9.7 per cent to 9.4 per cent last year.
In a report on the two regulatory bodies published last year, the National Audit Office said: “Current levels of staff turnover result in the consistent departure of skilled and experienced staff” and added this limited “the ability of supervisors to understand the firms they are supervising”.
A Bank of England spokesman said: “The Bank and PRA continue to attract and retain a diverse range of talent from a wide variety of backgrounds and with extensive private and public sector experience.”