The Australian Securities and Investments Commission (ASIC) says Dover Financial Advisers director Terry McMaster has agreed to “remove himself permanently” from the industry.

Dover will also cease operating its financial services business by Friday and move to cancel its licence, under the terms of a court-enforceable undertaking.

ASIC says it is concerned Mr McMaster is not of good fame and character, has impaired Dover’s ability to provide the services covered by its licence and is likely to contravene a financial services law in the future.

In April Mr McMaster collapsed while appearing before the Hayne royal commission at its first round of hearings, and was excused from further attendance.

ASIC says Dover’s “client protection policy” was directed toward protecting the interests of Dover and its authorised representations while avoiding liability for bad advice.

It created a significant imbalance in the rights and obligations of the advisers and their clients, the regulator said.

The policy was in effect from September 2015 until March this year, when it was withdrawn due to ASIC demands.