The Australian Competition and Consumer Commission (ACCC) will enhance its focus on financial services this year following the Productivity Commission’s draft report on the sector.

Last year’s federal budget provided funding for a dedicated ACCC Financial Services Unit that will identify issues and conduct market studies.

ACCC Chairman Rod Sims says the unit is completing a report on residential mortgage pricing and will then transition to market studies, focusing on competition issues.

“As was always envisaged, the Productivity Commission’s draft report has identified many issues that we will consider further,” he said in a speech last week outlining priorities.

The ACCC’s schedule includes the inquiry into northern Queensland insurance, while it is pushing for larger penalties for misbehaviour by big business.

“It is important to note that market studies are almost always the beginnings of our work in a market, not the end,” Mr Sims said. “They provide us with essential knowledge, they put an industry on notice, and they provide a framework for future action.”