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ARTICLE · 10 AUGUST 2026

Terminate With Caution: Regulatory Findings May Not Establish Cause

Crawley MacKewn Brush LLP
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The Ontario Superior Court's decision in Silva v Royal Bank of Canada examines whether regulatory compliance concerns and policy violations automatically justify dismissal for cause. When RBC terminated a long-serving financial planner following an investigation into client transactions and compliance practices, the Court scrutinized not only the alleged misconduct but also the fairness of the investigation and the substantial impact of regulatory reporting on the employee's future career prospects.

CanadaEmployment and HR
Linda Fuerst
Linda Fuerst
Michael L. Byers
Michael L. Byers
Nicolas Landriault
Nicolas Landriault
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Background

The Ontario Superior Court’s decision in Silva v Royal Bank of Canada, 2026 ONSC 3841, is an important reminder that regulatory concerns, compliance issues, and even adverse regulatory findings do not automatically establish just cause for dismissal. Allegations that may warrant regulatory scrutiny do not necessarily amount to misconduct serious enough to justify dismissal without notice.

Ravini Silva worked for RBC as a financial planner for nearly twelve years and built a successful book of business during her tenure. Over time, the relationship between Ms. Silva and management deteriorated. RBC commenced an investigation into concerns arising from certain client transactions and compliance practices. The investigation ultimately expanded to allegations that Ms. Silva had forwarded confidential information to her personal email account, processed transactions without proper authorization, and directed clients to backdate replacement documents. RBC terminated Ms. Silva

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