The Administrative Appeals Tribunal has cleared WA adviser Robert Hutchison of financial misconduct and set aside a lifetime ban barring him from the industry.

The Australian Securities and Investments Commission (ASIC) is considering the tribunal’s decision.

ASIC imposed the permanent ban on Mr Hutchison last year, saying he had dishonestly deposited client cheques into his personal account between January 2011 and November 2012, and was not of good fame or character.

But the appeals tribunal says the adviser’s actions, which occurred when he was an authorised representative of RI Advice Group, reflect lapses in judgment rather than character flaws.

“I find that [Mr Hutchison’s] conduct did not contravene a financial services law,” the tribunal’s Deputy President Stephen Boyle said. “There is no reason for ASIC to believe that [he] is likely to contravene a financial services law… and there is no reason for ASIC to believe that [he] is not of good fame or character.”