Former Sydney insurance broker James Sheehan has been permanently banned from the financial services industry for cheating clients out of more than $300,000.

The Australian Securities and Investments Commission found Mr Sheehan diverted premiums collected from clients for his personal benefit.

Between March 1 2016 and November 17 2017 he instructed clients to deposit money into accounts he controlled.

He tried to cover up his actions by cancelling client invoices after receiving the premiums. A false certificate was issued on one occasion to cover his tracks.

His actions meant “clients were left uninsured, with their businesses and third parties at significant risk”, the regulator says.

Mr Sheehan was the sole director, shareholder and employee of Allcover Insurance when he committed the offences.

He is also barred from engaging in credit activities. He can appeal the ban with the Administrative Appeals Tribunal.