The Senate has approved new legislation to enhance the powers of the Registrar of Companies.

The Registrar of Companies (Compliance Measures) Act 2017, tabled by Senator Jeff Baron, is intended to help the island maintain its OECD rating.

Mr Baron said the legislation would give the Registrar of Companies the ability to launch proactive investigations on companies registered on the island.

Progressive Labour Party Senator Kim Wilkerson said the Opposition was generally supportive of the legislation and that it was important for the island to continue its commitment to protect its international reputation through its OECD rating.