Former Guardian Advice financial adviser Andrew Moroney has been permanently banned for churning.

The Australian Securities and Investments Commission (ASIC) says Mr Moroney’s business model involved annually recommending clients replace one life insurance policy with another. This generated high upfront commissions each year.

ASIC says clients who took out new life insurance policies each year ran the risk of exclusionary periods or revised terms.

It says Mr Moroney failed to make reasonable enquiries into clients’ circumstances before recommending they change policies. He did not look at the conditions of policies held or new policies, and did not provide advice that was appropriate or in clients’ best interests.

ASIC Deputy Chairman Peter Kell says advisers maximising commission in this way, without valid reason, is unacceptable.

“It puts clients’ coverage at risk and drives costs in the sector, which are ultimately borne by consumers,” he said. “ASIC will remove advisers whose conduct breaches financial services laws and falls short of the standards expected of the industry.”

Mr Moroney was an authorised representative of Guardian from March 2006 to April 2014.