ASIC commissioner Sean Hughes said the government's Product Intervention Powers (PIP) will allow the regulator to take a targeted, calibrated and less prescriptive approach to regulation.

Speaking at the Australian Finance Industry Association Risk Summit, Hughes said ASIC will only be calling on its new PIP powers to intervene when absolutely necessary.

"As industry steps up to manage both financial and non-financial risks, ASIC will only need to intervene when early warning signs of harm and misconduct require us to do so," Hughes said.

"I regard PIP as an extremely important addition to ASIC's regulatory toolkit. It allows us to intervene where we are satisfied that a product (or class of products) is likely to result in significant consumer detriment."

Additionally, Hughes said PIP enables ASIC to confront, and respond to, harms in the financial sector in a targeted and timely way.

"But there are important checks and balances - it is a temporary intervention power, and we must consult before each and every use," he said.

Hughes also reiterated that an affected entity can seek to review any decision made by the regulator.

"Over time, the targeted solving of problems through product intervention may result in less regulation of industry overall," Hughes said.

"In recommending PIP, the Financial System Inquiry identified the objective of limiting or avoiding the future need for more prescriptive regulation."

Hughes also spoke about the regulators key priorities for the rollout of the design and distribution obligations (DDOs) scheduled for October this year.

"DDOs are commencing on 5 October 2021 and represent a real step-change in financial services regulation," Hughes said.

"You should be well underway in considering how best to approach implementing DDOs for your products and distribution."

Hughes said the two and a half years provided for companies to transition has been ample time for businesses to build their compliance capability for day one delivery.

"As I said earlier, from October 5 onwards ASIC will be expecting you to be ready to meet your obligations," he said.

"We will also continue providing support to industry as you prepare for commencement. However, the law is the law, and we will not be shy in enforcing it."