Australia’s financial regulator is actively pursuing cases which will allow it to utilise new powers and penalties granted by Parliament.

These enforcement efforts by the Australian Securities and Investments Commission (ASIC) are focused on both corporate and individual accountability, ASIC Chair James Shipton says.

It is a strategic priority to give more weight to cases with a high “deterrence value”, and where there has been egregious harm affecting vulnerable customers, he says.

“We are prioritising our continuing investigations involving major financial institutions and matters arising from the royal commission,” Mr Shipton told the Parliamentary Joint Committee, Corporations and Financial Services, in Sydney on Tuesday.

“We recognise we need to utilise the full suite of our regulatory tools to achieve our goals.”

New intervention powers give ASIC broad discretion to ban products or features or impose sale restrictions.

The number of ASIC enforcement investigations rose by a fifth in the year to June 30, with a 51% rise in the number of enforcement investigations involving Australia’s largest financial institutions, according to ASIC’s annual report.

“I want to emphasise ASIC’s continued focus on enforcement and deterrence as a fundamental part of our multi-dimensional approach to regulation,” Mr Shipton said.

ASIC has commenced legal action involving Select AFSL and its director, as well as unfair contract terms against Bendigo & Adelaide Bank and Bank of Queensland, and criminal charges against CommInsure for alleged hawking.

Some former financial advisers have been imprisoned and ASIC awaits judgement in an action against Dover Financial, AMP Financial Planning and Westpac regarding a former financial planner.

ASIC had previously come under fire over its apparent preference for negotiated agreements over public denunciation and punishment for wrongdoing. The regulator has since established the Office of Enforcement and a new “Why not litigate?” policy.