ASIC bans former Guardian risk adviser

According to ASIC, During his time while licensed with Guardian, Mr Moroney annually recommended his clients replace one insurance policy with another.

"This meant Mr Moroney received a high upfront commission payment each year for each replaced insurance policy," a statement from the regulator said.

"Clients who entered into a new life insurance policy annually were put at risk of exclusionary periods or revised terms," it said.

ASIC also determined that Mr Moroney failed to make “reasonable enquiries” into the clients’ circumstances before advising them to switch policies and had also failed to conduct research into the insurance policies he recommended.

ASIC deputy chairman Peter Kell said: “Conduct by advisers aimed at maximising commission by replacing insurance policies, without valid reason, is unacceptable.

“It puts clients' coverage at risk and drives up costs in the sector, which are ultimately borne by consumers. ASIC will remove advisers whose conduct breaches financial services laws and falls short of the standards expected of the industry.”

Mr Moroney was licensed with Guardian between 20 March 2006 and 3 April 2014.

Mr Moroney has the right to apply to the Administrative Appeals Tribunal for a review of ASIC's decision.