You spent your regulatory goodwill the way some people spend a Friday — quickly, and with regret on Monday. The watch list became an inspection. The inspection became an investigation. The investigation became a fine with a number large enough to have its own area code. The regulator now refers to your firm, in published guidance, as "an instructive example". Your successor has been told to "prioritise the relationship".
"Firms are reminded that the responsibility for AI outcomes rests with the firm." — The Regulator, pointedly