Fired Bank & Financial Services Employees

Major concerns that need to be immediately addressed if you were providing financial services or selling securities.

EMPLOYMENT LAW  |  FIRED WITHOUT CAUSE  |  FIRED FOR CAUSE  |  LAYOFF  |  FORCED OUT  | QUIT / RESIGN  | CLASS ACTIONS

Contact Neufeld Legal PC at 905-616-8864 / 403-400-4092 or Chris@NeufeldLegal.com

For employees in the banking and financial services sectors terminated from their job, the path to re-establishing a career in the financial services or securities sales sectors can be fraught with significant challenges.

When your employment is terminated, especially where your former employer alleges the termination was "for cause", this triggers a whole series of events that you will want to get ahead of and attempt to deal with.

From stringent regulations to mandatory disclosure requirements and the overarching scrutiny of powerful regulatory bodies, there are powerful forces that can challenge your re-employment and licensing. The core concerns revolve around regulatory hurdles, reputational damage, and the rigorous "fit and proper" assessments that govern the industry, which need to be appropriately dealt with as they can be career-altering, if not possibly career-ending.

One of the more significant concerns is your former employer’s mandatory filing of the Notice of Termination of Registered Individuals and Permitted Individuals (Form 33-109F1) with the regulators. Where your former employer has alleged that your termination was "for cause", this triggers a detailed disclosure requirement on their filed Form 33-109F1, outlining your former employer’s purported reasons for your dismissal.

This is not a private matter between yourself and your bank or financial services employer; it becomes a permanent part of your regulatory record, which is accessible to all provincial and territorial securities commissions and the Canadian Investment Regulatory Organization. This disclosure acts as an immediate red flag, prompting heightened scrutiny from regulators when you apply for re-registration with a new firm, such that the reasons for your termination will be meticulously examined to determine if they involve any breach of securities laws, regulations, or ethical standards.

Given that anyone seeking to be registered to sell securities or provide financial advice in Canada must be deemed "fit and proper" by the relevant provincial securities commission and Canadian Investment Regulatory Organization, when your former employer has alleged that you were terminated for cause, particularly if it involves dishonesty, negligence, or harm to clients, this will create serious doubt as to your fitness for employment with a prospective new employer.

Although the regulators will attempt to conduct a suitability review, considering the nature of the misconduct that led to the termination, this can be heavily weighted against yourself given the one-sided information that comes from your former bank or financial services employer. Given that it is your professional career that is on the line, while bank and financial services employers are largely focused on protecting their own self-interests, you will need to vigorously fight to protect your personal position. Factors that are subject to heavy consideration in this process include:

• Honesty and Integrity: Any actions involving theft, fraud, or deceit are viewed with extreme severity.

• Competence and Diligence: A dismissal due to gross negligence or a failure to follow established compliance procedures will be a significant concern.

• Financial Soundness: While less common, personal financial issues that could compromise an individual's judgment may also be considered.

The burden of proof lies with you, the applicant, to demonstrate that you are of good character and should be entrusted with the public's investments. Your former employer’s allegation of a "for cause" termination creates a significant uphill battle in satisfying this requirement.

Beyond the formal regulatory process, the reputational damage from a "for cause" termination can of itself be career-ending. Information about disciplinary actions taken by Canadian Investment Regulatory Organization or provincial securities commissions is often made public. This can include fines, suspensions, or permanent bans.

Even if you avoid formal sanctions, the "for cause" notation on your record with the National Registration Database, which can be a significant deterrent for potential employers. Banks and other financial services firms are required to conduct due diligence on new hires and are generally risk-averse to individuals with a history of compliance or ethical issues.

A prospective new employer in the banking or financial services industry faces several concerns when considering hiring yourself after you’ve been previously fired from a bank or other financial services firm, including:

• Increased Scrutiny: The hiring firm will likely face more intense questioning from regulators during the registration process for that new employee.

• Supervisory Burden: The firm may be required to implement enhanced supervisory procedures for that individual, adding to their compliance costs and workload.

• Vicarious Liability: The firm could be held responsible for any future misconduct by that employee.

• Reputational Risk: Associating with an individual with a tarnished record can damage the firm's brand and client trust.

These factors create a significant disincentive for prospective banking and financial services employers from taking a chance on an individual with a "for cause" termination on their record.

As such, it imperative that you look to immediately address your termination from a bank or financial services employer with a knowledgeable lawyer, such that you might deal with the fallout from your former employer’s allegations and its efforts to place the responsibility for your termination on yourself.

If your employment with a bank or other financial services employer has come to an end, contact our law firm to schedule a confidential consultation at Chris@NeufeldLegal.com or 905-616-8864 / 403-400-4092, and protect your legal interests.

Fired for Cause (allegedly) - Employer Reasons: It is amazing how conceited many employers can be when they assert that they are firing an employee for cause and thus attempting to avoid making any further payment to that fired employee. There are numerous reasons that employers cite for firing with cause; however, these are allegations that are presented from the biased perspective of the employer and typically fail to account for other legal considerations . . . Read More

 

Have You Been Fired from Your Banking Job WITH Cause: When your banking career has been abruptly ended with your employer firing yourself for cause, presenting its version of the facts and supported by a heavily slanted investigation, how do you fight those allegations (whether or not they are accurate)? Although addressing those allegations is important, Canadian bank employees have made the mistake of focusing almost exclusively on this single aspect of their employment relationship and it has come at a tremendous financial cost. Instead, fired bank employees need to look beyond the bank's allegations . . . Read More

 

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