The Australian Securities and Investments Commission (ASIC) has taken Dover Financial Advisers and its former director Terry McMaster to court.

ASIC alleges Mr McMaster and Dover deceived clients between September 2015 and March 2018 with a now-withdrawn client protection policy.

The regulator says the policy was designed to burden clients with potential liability for losses resulting from advice that was negligent, inappropriate or not in a client’s best interests.

It contained false and misleading information about the rights and protections available to clients, ASIC says.

Mr McMaster collapsed while appearing at the Hayne royal commission in April and was excused from further attendance.

He agreed in June to permanently remove himself from the industry, and Dover’s financial services license was cancelled under an enforceable undertaking.

ASIC is seeking a declaration that Mr McMaster and Dover contravened financial services law, and wants both fined.