Australian Securities and Investments Commission (ASIC) Chairman James Shipton says the financial services industry must do more to put people first and ensure practices are fair.

Everyone in finance should ask if a practice or product will cause harm, he told ASIC’s Annual Forum in Sydney.

“I am not convinced this level of questioning and procedural discipline has been applied by the financial industry when developing and reviewing business practices and financial products,” he said in his closing comments.

Mr Shipton says the financial services industry must embrace the concept of “first, do no harm” and should see pursuing fairness as an investment rather than a cost.

“The sobering reality is that, just as we need to make the financial system a fairer one, we also need to work harder to include every segment of our community into that system,” he said.

“Ultimately, we need a financial system that not only services every segment of the community, but also is one in which those who work feel proud of being a part.”

Earlier, he warned of a tougher regulatory approach from ASIC, with financial services providers in breach of the law more likely to face court action. ASIC came under fire during the Hayne royal commission for favouring negotiated agreements over public denunciation and punishment.

More than 950 delegates attended the ASIC forum, which coincided with the 44th annual meeting of the International Organisation of Securities Commissions.