The Australian Securities and Investments Commission (ASIC) has started legal action against NSW financial adviser Graeme Walter Miller and three related companies.

It is seeking a Federal Court order to ban Mr Miller from providing financial services, prevent him from dealing with assets or investor funds, disqualify him from managing corporations and wind up CFS Private Wealth, Combined Financial Solutions and BDM Asia-Pacific, which is deregistered.

ASIC alleges Mr Miller recommended clients of CFS Private Wealth establish self-managed superannuation funds and invest in CFS Corporation, of which he was a director.

The regulator says he used investor funds for personal use and to repay other investors in CFS Corporation, and failed to keep proper records of client investments in CFS Corporation.

Mr Miller continued to operate the CFS Corporation bank account after the business was deregistered, ASIC alleges.

He is accused of submitting illegitimate life insurance applications to receive commissions when clients were unaware of his actions. ASIC believes Mr Miller may be continuing to provide financial services or raising funds from clients.