While the Australian Prudential Regulation Authority's appearance before the House of Representatives economic committee has been in the works for some weeks, Westpac will form part of discussion.

Last week Westpac was accused by financial crime regulator AUSTRAC of committing 23 million money laundering breaches, some linked to child exploitation.

Committee chair Tim Wilson said while APRA appeared at a hearing in August, the committee determined additional information and questioning was required.

"The hearing will provide the committee with the opportunity to further question APRA on its performance and operation and, in particular, how it is implementing the recommendations of the Hayne royal commission," he said..

Treasurer Josh Frydenberg took a further step in responding to the commission's recommendations by introducing two sets of new laws on Thursday.

These included strengthening the power of the corporation watchdog - the Australian Securities and Investment Commission - while providing better protections for Australians taking out insurance.

"Implementation of these reforms as recommended by the royal commission is a critical component of restoring trust and confidence in Australia's financial system and is part of the Morrison government's plan for a stronger economy," Mr Frydenberg told parliament.

However, mortgage brokers are off the hook for now to some extent with a review of how they are paid put off for three years,'

ASIC will have search warrant powers in line with other serious crime fighting agencies, along with access to telecommunications intercept material, stronger licensing powers and extended powers to ban individuals from managing financial services and credit businesses.

"This bill ensures ASIC has the powers it needs to effectively enforce the laws it administers," Mr Frydenberg said.

Separately, Mr Frydenberg is extending unfair contract terms to insurance contracts and better protections for consumers taking out funeral insurance.

"Until now insurance contracts have been exempt from regulation," Mr Frydenberg said.

"Ensuring consumers and small businesses can purchase or renew their insurance policies with confidence is important."

He said the royal commission uncovered evidence of significant harm caused to vulnerable consumers and poor sales practices adopted by funeral expenses policy providers.

"Exemption in the corporations act that allowed these providers to escape the scrutiny of the Australian Securities and Investment Commission will be removed," he said.

Even as the new bills were being rolled out for parliamentary debate, ASIC said the Colonial Mutual Life Assurance Society Ltd, trading as Comminsure, had been fined $700,000 for 87 counts of offering to sell insurance products through unlawful, unsolicited telephone calls, otherwise known as hawking.

The new bill also requires mortgage brokers to act in the best interests of consumers when providing consumer credit assistance.

However, the treasurer said after careful consideration the government decided to delay aspects of commissioner Hayne's recommendations for the remuneration of mortgage brokers.

Instead a review involving the Council of Financial Regulators and the Australian Competition and Consumer Commission would be done in 2021.

Australian Associated Press