The number of sackings and suspensions of people working in financial “City” jobs has plummeted by nearly a third, according to data obtained by a law firm.

Using a freedom of information request, researchers at Pinsent Masons found that 939 people employed by financial services institutions were fired or temporarily suspended, 32 per cent lower than the previous year.

The data suggests job losses in the sector fell to their lowest level since the peak of the financial crisis in 2008.

Kirsty Ayre, a partner in the financial services team at Pinsent Masons, said 2012 represented a “high water-mark”, as a series of new financial scandals came to light in the media.

She added: “The number of sackings and suspensions is still relatively high, but clearly the threat of multi million pound fines and a new push toward personal accountability means that staff in authorised roles operate in a more transparent environment."