Australian Securities and Investments Commission (ASIC) Chairman James Shipton says an over-reliance on disclosure has not served consumers well and the regulator will use expanded powers to take more forceful action where necessary.

Mr Shipton says ASIC intends to draw from an “enhanced regulatory toolkit” as it addresses consumer harm, punishes wrongdoing and encourages better culture and behaviour, with planned measures outlined in the latest corporate plan released last week.

“We also have to recognise the limitations of certain tools,” he told the Financial Services Council summit last week in Sydney. “One example is the need to shift away from an over-reliance on disclosure to protect consumers,

“Instead, we will look to use targeted powers like the product intervention power more often.”

Mr Shipton says ASIC will “say more about the inherent limitations of disclosure” when it soon publishes a joint report with Dutch regulator AFM.

The corporate plan for 2019-23 sets out seven strategic priorities and explains how ASIC will bolster its capabilities.

The priorities include prioritising recommendations and referrals from the Hayne royal commission, addressing harms in insurance, taking high deterrence enforcement action and protecting vulnerable consumers.

The regulator will also address areas where there are poor financial outcomes, seek to improve governance and accountability and increase its activity around superannuation.

Mr Shipton told the summit ASIC would support and implement insurance law reforms, with legislative changes set to extend its oversight to claims.

“As these legislative reforms are implemented, we will look to take action on unfair contract terms and concerns in claims handling,” he said.

ASIC expects to make greater use of insights from the behavioural sciences, data and technology as it bolsters its ability to oversee the financial sector.