As part of its defence, ASIC pointed to the fact that Australia's financial system "performed better than nearly every other jurisdiction in the world during the global financial crisis".
The regulator highlighted the fact that it has completed 4,000 surveillances and 554 investigations "with a broad range of regulatory outcomes" over the last three years.
Since 2010, ASIC has also banned 168 individuals from performing financial services or credit services, and 209 directors from managing a company, according to the submission.
The regulator said it has completed 73 civil and 79 criminal proceedings in the last three years, as well as entering into 56 enforceable undertakings with financial services entities to address compliance failures or inappropriate conduct.
The ASIC submission makes a number of "policy suggestions to enhance ASIC's performance", which include removing bad apple advisers and managers from the industry, raising financial adviser competence through a national exam, enhancing whistleblower protection, strengthening ASIC's licensing powers, streamlining search warrant powers, and reviewing the level and consistency of penalties.
ASIC also said it is "considering its contribution to any broader review of the financial system that may be established", in a reference to the new government's so-called 'Son of Wallis' inquiry.
The release of today's submission follows the release of an earlier ASIC submission into its actions relating to Commonwealth Financial Planning, as well as a submission into the regulator's role in overseeing consumer credit activities.
