The corporate regulator has told the financial services industry it is responsible for the “trust deficit” it faces.

Evidence heard during the Hayne royal commission has exposed weak internal processes for identifying, reporting and dealing with misconduct, Australian Securities and Investments Commission (ASIC) Chairman James Shipton says.

While ASIC and other regulators play important roles as industry overseers, financial services companies bear the ultimate responsibility.

“Australia’s corporations, and the finance sector in particular, are suffering from a trust deficit, and this current predicament is of the sector’s own making,” Mr Shipton said.

“And because it is largely of its own making, the sector must be held to account and must take responsibility for its repair.

“ASIC and other regulators have a crucial role to play here, too.

“But, ultimately, trust can only be restored if these companies work root and branch to change their ways… to rebuild their culture from deep within.”

ASIC plans to accelerate and expand its Wealth Management Project, established in October 2014 to examine the conduct of major financial advice businesses.

The regulator is considering ways to build on the program’s enforcement outcomes, including making greater use of external expertise in investigations.