A House of Representatives committee inquiry into the progress financial services companies are making on Hayne royal commission reforms will increase transparency, Treasurer Josh Frydenberg says.

The Standing Committee on Economics will inquire into how much progress institutions and associations are making on Kenneth Hayne’s recommendations, complementing work undertaken on the big four banks, Mr Frydenberg confirmed last week.

“Commissioner Hayne made clear that primary responsibility for misconduct in the financial sector lies with the institutions concerned and their boards and senior management,” he said.

“The parliamentary inquiry will help provide further transparency to the public on the work financial institutions are undertaking to implement recommendations from the royal commission, and in doing so will contribute to restoring the community’s trust in the sector.”

Suncorp Insurance CEO Gary Dransfield says the inquiry should be seen as a chance to provide information about the industry to politicians, who are typically more across issues in the banking sector.

“I don’t think it is a bad thing if large insurers are required to turn up to a House or Senate committee to answer questions,” he told insuranceNEWS.com.au.

“That doesn’t mean it will be a deeply enjoyable process for whoever has to do it, but I think you should see it as an opportunity to improve understanding.”