The Australian Securities and Investments Commission (ASIC) will have a competition mandate added to its role and appoint a second deputy chairman, Revenue and Financial Services Minister Kelly O’Dwyer said today.

“It is my belief that, ultimately, it is competition – not regulation – that is the best means of ensuring consumers get value for money in financial services,” she told the ASIC Annual Forum in Sydney.

“This new mandate will require ASIC to consider the effect its work and the exercise of its power will have on competition in the financial system.”

Ms O’Dwyer says ASIC will gain stronger directions powers to deal with misconduct cases, and consultations are continuing on proposed product intervention powers where risks to consumers are identified.

“A second deputy chairman will give… greater flexibility to manage the breadth of ASIC’s new powers and increased responsibilities resulting from recent and upcoming law changes,” Ms O’Dwyer said.

The changed structure brings ASIC into line with the Australian Competition and Consumer Commission, which has two deputies, and will require a legislative change.

Ms O’Dwyer says she has reappointed current Deputy Chairman Peter Kell for a further one-year period from May 6. Commissioner John Price has been retained for a further two-year period.

ASIC Chairman James Shipton told the forum it is important to rebuild the public’s trust in finance and to heighten professionalism.

“We need to recognise that it will need whole and undivided commitment across the entire financial ecosystem to address this challenge,” he said.

“Industry and the people within it need to do more, and need to take more of a leadership role.”