The Independent Commission Against Corruption should be stripped of its power to hold public hearings "to prevent the undeserved trashing of reputations", the watchdog's inspector, David Levine, has recommended.

Mr Levine also wants consideration of an "exoneration protocol" which would allow people found corrupt by ICAC but who are not later convicted on criminal charges to have the records "expunged" or the finding set aside by the Supreme Court.

The recommendations are contained in Mr Levine's long-awaited report on ICAC's powers delivered to Premier Mike Baird on Thursday.

Mr Levine was asked by Mr Baird to review ICAC's powers following the report of an expert panel comprised of former chief justice of Australia Murray Gleeson and barrister Bruce McClintock, SC, in July last year.