From oversight to impact: How leaders are shaping the future of regulation

In our recent roundtable hosted in partnership with the Institute of Regulation, we explored how leadership and culture can facilitate this shift. The conversation centred on a key question: How can regulators enable growth through culture and leadership? Three practical priorities emerged.

Bring your purpose to life - make the hidden benefits clear

Regulators often define their purpose through statutory responsibilities – but those embracing the new agenda go further. They articulate a broader societal value: why they exist, what they protect, and how they contribute to public safety and economic growth, often in ways the public may not immediately see.

The Financial Reporting Council (FRC) updated its organisational purpose as part of its recent strategy and in doing so firmly placed serving the public interest and supporting UK economic growth at the forefront to better reflect the increased focus the government has placed on regulators supporting economic growth.

Similarly, the Financial Conduct Authority’s thematic review found that firms with a stronger sense of purpose had significantly fewer conduct failures and better consumer outcomes. In a recent speech, Jonathan Davidson, Director of Supervision, Retail and Authorisations at the FCA, further emphasised this impact of purpose on positive consumer outcomes.

Defining and communicating purpose in a way that resonates both internally and externally helps teams understand the ‘why’ behind their work and build public trust. When purpose is clear, leaders can better measure the value of their actions – whether aligning with government priorities, improving organisational performance, or accelerating time to impact. The Civil Aviation Authority for example, created a mission, vision, and purpose specifically for aviation consumers and publishes service level targets as one way of measuring how well they are serving this community.

Clarify risk appetite – empower confident decisions

Regulatory decisions are grounded in risk. However, the appetite for risk isn’t always clearly understood across all organisational levels. What’s more, different stakeholders – political bodies, industry, and the public – interpret acceptable risk in conflicting ways, creating ambiguity around who owns the consequences of regulatory choices.

While most regulators have Board-approved risk frameworks, these are often too abstract to guide day-to-day decisions. Modern regulatory leaders are bridging that gap by translating high-level principles into practical guidance that empowers teams to act with confidence. The Government Finance Function’s Risk Appetite Guidance Note highlights that public sector organisations must move beyond risk aversion to succeed. It calls for dynamic, conscious determination of risk appetite to support informed decision-making and opportunity-taking.

In practice, this means testing risk appetite in real-world scenarios, engaging openly with Boards, operational teams, and oversight bodies, and creating psychological safety for staff to make informed decisions within agreed risk boundaries. When risk is clearly defined and consistently communicated, regulators can move faster, act smarter, and stay aligned with their purpose.

At the FRC, ExCo ensures the values, behaviours, and policies of their risk management framework are communicated and embedded. Recently, this included initiatives such as risk awareness week during which they gathered insights from staff, non-exec directors and industry experts, to promote the importance of a strong risk culture.

Build for impact – lead change from the inside out

Successful cultural and leadership strategies embrace adaptability, recognising that iterative change is now the norm. The Regulating for Growth report (2025) urged regulators to embed a pro-growth mindset in daily operations, beyond rulemaking. New tools and approaches such as open forums and modern engagement platforms are helping to shape culture from the inside-out.

The regulatory leaders at our roundtable expressed the importance of embedding new approaches that engage colleagues, co-creating solutions and fostering mindsets that drive better public outcomes. Decisive action, momentum, and clarity are critical, helping organisations to stay ahead of industry shifts.

In a fast-moving environment, regulators must foster internal cultures that embrace adaptability, collaboration, and momentum. This means engaging teams in shaping new ways of working, investing in leadership development, and using modern tools to build connection and clarity. When change is co-created and purpose-driven, it sticks. And, as regulators increasingly share experiences and learn from one another – through networks such as the Institute of Regulation and the UK Regulators Network – the potential for collective progress is growing.

Being a leader at a regulator is both a challenge and a privilege – a chance to shape outcomes that matter to the public. Meeting the moment calls for clarity of purpose, a confident approach to risk, and a culture built to deliver lasting impact.