Australian Securities and Investments Commission (ASIC) Chairman James Shipton says the recent action on add-on insurance sold through car yards illustrates the preferred approach to competition problems.

ASIC says specific regulatory responses take competition factors into consideration when cases involve consumer harm and poor conduct.

“To the extent possible, ASIC has taken this kind of tailored approach to various competition problems in financial markets,” Mr Shipton told a Senate Economics Legislation Committee hearing.

“Our work on add-on insurance sold through car yards is a good example.”

Mr Shipton, who became Chairman last month, says he is “acutely aware” of the need for ASIC to connect with the public, and he plans to visit communities outside the main cities to better understand their financial issues and concerns.

The regulator is proceeding with work to improve community financial literacy and education, and will introduce a new national strategy later this year.