The Australian financial regulator has banned a former Westpac employee, who was in charge of sourcing and submitting personal insurance business, over his “misleading conduct”.

The Australian Securities and Investments Commission has banned former Westpac senior financial planner Martin Hodgetts from the financial services industry for submitting false insurance policies.

ASIC found Hodgetts had submitted nine false insurance policy proposals to the Sydney-headquartered bank between May and September last year to secure more commission. The policies, which were neither requested nor approved by a Westpac customer, contained invented details, including imaginary conversations and false signatures.

Hodgetts used the bank’s internal software system to change details of two of the false policies after they were submitted in order to avoid detection, the regulator said. Hodgetts, who joined the bank five years ago and left in September 2014, has repaid the commissions he received from the nine false policies.

“Mr Hodgetts’ misleading and deceptive conduct was driven purely by the commissions he collected which is completely contrary to the integrity required of a person in his position,” said ASIC deputy chairman, Peter Kell.

The ban comes as part of ASIC’s Wealth Management Project, which launched in October to target compliance in the country's four major banks, Macquarie and AMP.

Victoria Police have laid charges in relation to Hodgetts’ conduct, ASIC said.