ASIC deputy chairman Peter Kell resigns

His term was therefore extended by a further year, meaning he was due to depart in May next year.

He will keep working at ASIC until December 6, when ASIC's royal commission response work is expected to be completed.

"It's been a privilege being commissioner in an organisation like ASIC, and I was happy to stay on to help the James Shipton transition into the new chair. Now that that has occurred, and the fact we have several additional commissioners which have come on board, the timing is right for me to move on," Mr Kell told The Australian Financial Review.

New leadership

The government has recently announced new ASIC leaders in addition to Mr Shipton. It has a new commissioner, Danielle Press, former chief executive of Equipsuper, starting this week.

Another new commissioner, Sean Hughes, a former New Zealand regulator and current Tabcorp general counsel, will start later this year.

It also has a new deputy chairman, Daniel Crennan, QC, whose focus is on enforcement.

Earlier this month, Mr Shipton launched a new four-year corporate plan, including a renewed focus on super, insurance and other parts of the financial service sector. The government has recently committed an addition $70 million in funding.

After Mr Kell's departure, ASIC will have six commissioners.

It's understood Mr Kell does not have other job lined up, and is planning on taking a break. This comes after a hectic period for regulators, which have been dealing with an unprecedented amount of new policy as the government has sought to get tough on banks, and then the royal commission.

Mr Kell, who has been at ASIC for seven years, has been the key driver of much of its financial sector policy. This has included its recent report criticising credit cards, its comprehensive review of mortgage broker remuneration, its work to improve terms in lending contracts, and its crackdown on payday lending.

He has also been the main consumer representative within ASIC, after previously leading consumer group CHOICE and working as deputy chairman of the Australian Competition and Consumer Commission.

He also has led ASIC's work on the new product intervention power, its design and distribution power and its response to an 'enforcement review', which were all recommendations of David Murray's financial system inquiry in 2014.

He also led ASIC's work reviewing vertically integrated firms and its monitoring of direct life insurance, and has been on the government's Financial Literacy Board.

"The coalition government thanks Mr Kell for his contribution to ASIC and wishes him well in his future endeavours," Treasurer Josh Frydenberg said in a statement announcing the resignation.

Mr Frydenberg made another regulator announcement on Tuesday, with long-time senior Treasury official John Lonsdale to join the Australian Prudential Regulation Authority as its second deputy chairman.

The departure of Mr Kell comes after Mr Frydenberg criticised the past failures of ASIC in the Financial Review at the weekend and promised it new powers to speedily compensate victims of misconduct.