Incoming Australian Securities and Investments Commission (ASIC) Chairman James Shipton intends to work on industry culture and trust when he starts his five-year tenure on February 1.

ASIC must be a “strong, proactive, efficient, innovative and strategic regulator” to meet significant challenges facing the financial system, the former Goldman Sachs banker said last week.

“Financial markets are, ultimately, built on trust,” he said.

“I see ASIC as a guardian of that trust and as an institution that is there to constantly remind market participants that finance only exists to serve the broader community and the economy.”

He also wants a stronger culture – an area that has already received greater scrutiny under outgoing Chairman Greg Medcraft.

“Culture is among the greatest challenges for all financial markets globally,” Mr Shipton said.

“I’ve been a great advocate of cultural reform in financial institutions and in the financial markets for a long time… I very much intend to continue this important work.”

Mr Shipton is currently Executive Director of the Program on International Financial Systems at Harvard Law School. He was formerly a Hong Kong Securities and Futures Commission executive director and commission member.

Insurance Council of Australia CEO Rob Whelan has welcomed the “notable appointment”.

“I look forward to meeting Mr Shipton in the new year to discuss his vision for ASIC and how it will affect insurers and consumers,” Mr Whelan said.

Mr Medcraft ends his term next month, and Deputy Chairman Peter Kell will fill in until February.