The Australian Securities and Investments Commission (ASIC) has barred a former Heath Lambert Group insurance broker from working in the financial services industry for two years after revelations he was charging hidden commissions.

Martin Colebrook, formerly Heath Lambert's Head of Government and Infrastructure in NSW, was disqualified after ASIC discovered he was charging at least one client a commission fee for broker services in violation of contract.

ASIC claims that between 2001 and 2004 Mr Colebrook failed to disclose to Sydney Water a broker fee included in premiums covering the company's London and Australian liabilities.

The contract between HLG and Sydney Water specifically stated no broker fee could be charged.

ASIC also found Mr Colebrook had persuaded Sydney Water to purchase cover when he knew the advice was misleading, false or deceptive.

Mr Colebrook has the right to appeal to the Administrative Appeals Tribunal.