Australian Securities and Investments Commission (ASIC) Chairman James Shipton has urged Parliament to quickly pass laws to help the regulator crack down on poor behaviour.

The Government plans to introduce legislation this week to strengthen penalties for corporate misconduct, while a Senate inquiry is reviewing proposed product intervention powers.

“It is vital that the increased penalties and regulatory powers – product intervention powers, design and distribution obligations, as well as a directions power – pass the Parliament as soon as possible,” Mr Shipton told a parliamentary joint committee on Friday.

Legislation to be introduced this week would increase maximum criminal penalties for corporations to the greater of $9.45 million or three times the benefit gained or loss avoided, or 10% of annual turnover. Fines and prison terms for individuals in criminal cases would also rise and the maximum penalties in civil cases would sharply increase.

ASIC drew fire in the Hayne royal commission’s interim report last month for favouring negotiated agreements over public denunciation and punishment for wrongdoing.

The report also criticises the regulator for issuing infringement notices with small penalties, rather than pushing for higher fines through courts.

Mr Shipton says ASIC is still experiencing slow responses from institutions, and in some cases deliberate delaying tactics, and it will come down hard on businesses that fail to co-operate.

“If institutions lie, or are otherwise dishonest with us, we will use every power available to us to punish that behaviour. I am a firm believer in the importance and effectiveness of court-based enforcement tools. They are the foundation of any regulator.”

Mr Shipton says a discussion is needed on ASIC’s size and resourcing, given community expectations and the challenges of Australia’s financial system.

“For me, my experience as a regulator in Hong Kong, in a system that also has an industry funding model, is instructive. There, on an adjusted basis, in terms of financial services GDP and financial services population, Hong Kong’s financial regulators are three times the size of Australia’s.”