A former Sydney insurance broker caught engaging in “dishonest conduct” has been banned permanently from providing financial services and engaging in credit activities.

James Sheehan of Allcover Insurance was handed the life ban after an Australian Securities and Investments Commission (ASIC) probe found he siphoned off more than $300,000 in premiums collected from clients for his personal benefit.

He told clients to deposit the money into accounts controlled by him between March 1 2016 and November 17 2017.

The ASIC investigation also found Mr Sheehan sought to cover his actions by cancelling client invoices after receiving the premiums so that they could not uncover his dishonesty.

On one occasion, he issued a false certificate of currency to a client to cover his tracks.

ASIC says his behaviour meant “clients were then left uninsured, with their businesses and third parties at significant risk”.

Mr Sheehan was the sole director, shareholder and only employee of Allcover Insurance Pty Ltd.

His ban will be recorded in ASIC’s banned and disqualified persons register.

He has the right to appeal the ban in the Administrative Appeals Tribunal.