The Australian Securities and Investments Commission (ASIC) must open up a more transparent system with better communication channels and education, new Chairman Greg Medcraft says.

In his first major speech since taking up the chairmanship last month, Mr Medcraft told the annual Financial Ombudsman Service conference in Melbourne there is a need for ASIC to “go beyond disclosure”.

“Before the last few years of global financial turmoil, we thought that all we needed to correct the information asymmetry between investors and issuers was disclosure,” he said. “However, there is now an increasing recognition that disclosure is not always enough on its own.”

Mr Medcraft concedes some products are more complex than others and the associated risks can often be difficult to understand.

“Even dealing with relatively simple products requires investors and consumers to have a certain level of financial literacy,” he said.

ASIC now needs to look at ways of making the system work better.

“We have a significant role to play in leading this,” Mr Medcraft said. “However, we are also encouraging others to take an active role in helping retail investors and consumers get a fair deal and make appropriate decisions.

“This includes issuers, advertisers and gatekeepers – we all have a role to play.”

He says ASIC also plans to bring in new standards for professional and ethical behaviour and is currently working with an advisory panel of consumer and industry representatives.