(Reuters) -An Australian Court has ordered RI Advice Group Pty Ltd to pay A$6 Million ($4.28M) as a penalty for improperly advising clients. The order was made by the country’s securities regulator on Thursday.

The action relates to a case where the Australian Securities & Investments Commission (ASIC) alleged that RI Advice failed to prevent and penalise the conduct of its former financial advisor, John Doyle, while advising on investments in complex financial products.

The court ruled that RI Advice had not established the right internal mechanisms necessary to notify and punish financial advisers for their conduct at the time.

Doyle served as an authorised representative for RI Advice from May 2013 to June 2016. The firm was an ANZ business that provided financial advice until it was purchased by Insignia Financial Ltd in 2018.

Australia’s financial institutions and lenders have come under severe scrutiny after a Royal Commission investigation in 2018 found numerous deficiencies. Companies and regulators had to swiftly take action.

In addition, the commission looked at Doyle and RI Advice as a case study for ‘bad advice.

ASIC Deputy Chair Sarah Court stated that the Court’s A$6 Million penalty against RI Advice sent a clear message to licensees of financial services to monitor their advisors’ advice to ensure consumers are protected.

Insignia spokesmen said that since the incident, the court had found that RI Advice has improved its governance standards and therefore it did not have to appoint an outside expert to inspect the compliance processes.

ANZ claimed it was not a participant in proceedings that started after it had ceased its ownership.

($1 = 1.4035 Australian dollars)