The corporate regulator has permanently banned South Australian company director Craig John Horsell from providing financial services after he dishonestly obtained more than $400,000 from clients.

The Australian Securities and Investments Commission (ASIC) started an investigation into Mr Horsell after being alerted about his activities by insurance company Horsell International.

Mr Horsell was an employee and director of Horsell International and PSC Horsell Insurance Brokers between January 22 2007 and July 23 2010.

ASIC’s investigation revealed Mr Horsell “had acted dishonestly and in breach of financial services laws” between September 7 2007 and May 4 2010 when he authorised the transfer of 72 insurance premium payments, worth $409,635.24, from clients into his own bank account.

The insurance products the clients thought they had purchased were never bought and they were left uninsured.

ASIC says Mr Horsell’s actions “could have had a detrimental impact on a client if an event giving rise to a loss had occurred while they were uninsured”.

Horsell International and its broker arm have recovered the money and all insurance covers that “were suspected of either being fabricated or compromised by Mr Horsell’s conduct have been placed or reinstated so that no clients have faced any financial losses”, ASIC says.

Mr Horsell has the right to appeal ASIC’s decision in the Administrative Appeals Tribunal.

ASIC permanently banned Mr Horsell “in order to protect the public, deter similar conduct and maintain consumer confidence in the financial service sector”.