Dr Chalmers has updated the government's statements of expectations for the Australian Prudential Regulation Authority and Australian Securities and Investments Commission for the first time since 2021, when the coalition was in power.
The statements, issued on Thursday, outline the government's expectations of how the regulators will carry out their functions.
They were updated to place greater emphasis on not getting in the way of productivity and economic growth.
ASIC has previously attracted criticism from former Treasury secretary Martin Parkinson, who claimed a "gotcha" approach to regulation and excessive red tape was creating investment uncertainty and diverting companies from focusing on growth.
The government's previous statement of expectations for ASIC required the watchdog to "minimise the costs and burdens of regulatory requirements for regulated entities and consumers".
The updated statement went further, directing ASIC to "support strong, sustainable economic growth" through its approach to regulation.
It expected ASIC to consider the regulatory impact of its activities, "ensuring its actions are proportionate and promote the advancement of consumer interests via competition, growth, and economic dynamism".
Both ASIC and APRA were directed to adopt a proportionate, risk-based approach to regulatory activities to support the government's commitment to driving productivity and economic growth.
The statements were about enabling the regulators to unlock more productivity and growth in the economy, Dr Chalmers said.
"We're striking the right balance between supporting productivity and investment, reducing the regulatory burden on businesses, promoting stability, and safeguarding our financial system and markets," he said.
"This is all consistent with the clear direction set by the economic reform roundtable last year"
While elements of the business community have criticised ASIC for driving an overly risk-averse corporate culture, the regulator has also come under fire for not being proactive enough and failing to intervene in the First Guardian and Shield collapses before it was too late.
A Senate inquiry into ASIC in 2024 found the watchdog too often failed to respond to early warnings of corporate misconduct and did not routinely use the full extent of its powers to achieve strong enforcement outcomes.
Then-ASIC chair Joe Longo strenuously denied the corporate regulator was weak, pointing to an increase in litigation and record fines imposed by the courts.
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