The U.K. banking regulator is shifting its focus to rigorously monitoring outcomes, rather than adding rules, and this is driving investment in oversight functions. While it has freed larger banks to report biannually, instead of annually, increased expectations for directors to understand and attest to the accuracy of reported figures, and the implementation of the Basel 3.1 banking standard from Jan. 1, 2027, mean compliance teams must stay vigilant.

Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...