The Australian Securities and Investments Commission (ASIC) has permanently banned a former Ace Insurance authorised representative from the financial services industry, following a probe into selling practices at Combined Insurance.

Abhinav Gupta is the first person brought to book after whistleblowers alleged agents at Combined – a wholly owned subsidiary of Ace – systematically duped customers to maximise commissions.

Head of Combined Insurance Asia-Pacific Chris Carey says Ace terminated Mr Gupta in May last year following an internal investigation.

“No customers ultimately suffered financial loss as a result of Mr Gupta’s actions,” he told insuranceNEWS.com.au.

ASIC’s investigation revealed Mr Gupta issued a policy in the name of a client without their agreement, and used one client’s bank account details on another client’s policy application.

He also issued at least 12 fictional policies – some in the names of clients who did not exist and others containing false employment details and non-existent bank accounts.

Mr Gupta was not paid a salary by Combined Insurance but received upfront and volume bonus commissions, along with incentives such as electronic devices and gift vouchers.

ASIC Deputy Chairman Peter Kell says Mr Gupta’s actions were motivated by his own potential gain. “For the protection of the public, ASIC will act to ensure dishonest insurance advisers are removed from the industry,” he said.

Mr Gupta, who was based in Victoria, has the right to appeal to the Administrative Appeals Tribunal.

ASIC says its investigation into Ace and the Combined Insurance division is ongoing.