The Australian Financial Complaints Authority (AFCA) will be able to name and shame financial firms in its published determinations following approval from ASIC.
In deciding to disclose names, the Australian Securities and Investments Commission said this will help identify conduct or market problems within organisations, specific products or services.
"ASIC's view is that naming firms in determinations can help identify conduct or market problems within firms or affecting specific products or services, as well as highlighting where firms have done the right thing," ASIC said in a statement.
The public will now be able to access increased information about the actions of financial firms"
ASIC said it would also enhance transparency and accountability of performance in complaints handling and AFCA's own decision-making.
Already in its first six months, AFCA received 35,263 complaints with up to 5,000 to be finalised each year by way of determination, all of these could now name firms.
AFCA will issue an updated operational guideline that sets out examples of circumstances in which a determination naming a financial firm would not be published. This includes where naming may expose confidential information about a firm's systems or policies.
AFCA chief ombudsman and chief executive David Locke said the rule changes allowed firms to be more open and accountable to the public.
"We welcome ASIC's approval to change our rules, which will allow us to now name financial firms in decisions we publish on our website. This is an important change, and the public will now be able to access increased information about the actions of financial firms."
Consumers will continue to be anonymised in all determinations.
The corporate regulator is revamping its approach after being critised for being soft on financial misconduct. This includes a renewed focus on tackling community harm from through the inappropriate sale of financial products and making sure enforcement action actually deters companies from wrongdoing.
"If the firms or individuals we regulate do not [live up to community expectations], we have the will, the resources and the regulatory tools to hold them to account," ASIC chair James Shipton said in releasing the regulator's four-year plan.