Additional federal funding will enable further surveillance and enforcement in areas such as life insurance, financial planning, responsible lending and misconduct and breach reporting, Australian Securities and Investments Commission (ASIC) Chairman Greg Medcraft says.

He told the Senate Estimates Committee the extra $127.2 million announced by the Turnbull Government last month will also allow ASIC to build its data analytics capacity, to “better identify and assess risks and misconduct”.

“When I talk about data analytics, I really mean assessing large quantities of data and information effectively to spot trends and patterns and use this to focus our surveillance and enforcement resources in the areas that pose the biggest risks,” Mr Medcraft said.

He gave the example of trends around claim rates on a particular insurance product, which “might point to wider industry problems”.

“This means ASIC can identify wrongdoing earlier and respond more quickly, meaning fewer investors and consumers being affected,” he said.

Mr Medcraft also welcomed the Government’s commitment to ensuring key recommendations from the Financial System Inquiry are implemented.

“We will work with the Government and Treasury to make sure the regulatory framework allows ASIC to most effectively address market misconduct,” he said.

Mr Medcraft was appointed ASIC Chairman in 2011 for a five-year term. Last month the Turnbull Government extended his term until November 12 next year.

“We have a lot of important work to continue and I am keen to get on with the job,” he told the Senate committee.