ASIC is encouraging people to dob in others who worked with them on market manipulation, insider trading or dishonest conduct in financial services - in exchange for immunity.

ASIC says it can offer such individuals immunity from civil proceedings, while working with the Commonwealth Director of Public Prosecution (CDPP) on criminal immunity. This is for some contraventions of the Corporations Act.

It has set up a hotline (+612 9911 5008), an email (immunity@asic.gov.au) and an online form for people to report.

ASIC says the initiative will help it identify and take enforcement action against specific markets and financial services breaches of the law.

"ASIC continues to develop and implement new tools to combat and detect misconduct. The Immunity Policy enhances ASIC's ability to identify and take enforcement action against complex markets and financial services contraventions," ASIC commissioner Sean Hughes said.

The immunity will be only granted to the first person who satisfies the immunity criteria and reports the misconduct to ASIC prior to commencement of an investigation into the conduct.

"Individuals who do not meet the criteria for immunity are still encouraged to cooperate with ASIC and will be given due credit for any cooperation received...ASIC will not provide immunity from any administrative or compensation actions. Any cooperation provided by an individual will be considered in determining whether to take administrative action against the individual," it said.

In the past, former investment analyst from Maple-Brown Abbott Michael Ming Jinn Ho received a 50% discount to his sentence after he entered an early guilty plea in February to insider trading on Big Un shares and cooperated with ASIC by providing documents and interviewing with the regulator.