The Federal Government has passed a parliamentary bill that will beef up the power of the corporate regulator.

Under the legislation, the Australian Securities and Investments Commission (ASIC) is now able to compete for staff more effectively by removing the obligation to engage staff under the Public Service Act. This will allow it to tailor staff arrangements as it needs.

This brings it into line with the Australian Prudential Regulatory Authority and the Reserve Bank.

ASIC is now also required to consider how the exercise of its powers will affect competition in the financial sector.

The bill was in response to key recommendations from the Financial System Inquiry and ASIC Capability Review.