Finra arbitrators have handed down a significant ruling against RBC, ordering the financial services firm to pay $9.7 million in damages to a former advisor at the firm who alleged its decision to fire her was an act of opportunism and discrimination.
According to the award decision served October 30, Cinda Collins pursued several causes of action, claiming that she was wrongfully terminated due to age and gender discrimination. She also argued that by terminating her close to retirement, RBC was able to assume control of much of her book of business without proper compensation.
Collins began her financial services career in 1987, according to Finra's BrokerCheck system, spending roughly two decades at RBC Capital Markets. She's currently registered as an investment advisor and broker at Wells Fargo.
She filed her statement of claim against RBC in August 2020, asserting that its actions violated Minnesota state law by failing to uphold “high standards of commercial honor and just and equitable principles of trade,” as well as engaging in discrimination.
Her complaint also cited claims of defamation and unjust enrichment, for which Collins requested an award in excess of $7 million, though those claims were ultimately denied by the arbitration panel.
In a detailed ruling considering the pleadings, testimony and evidence presented at the hearing, and post-hearing submissions, the panel awarded Collins $6.1 million in compensatory damages.
She was also granted $2 million in punitive damages, which the panel stated were in accordance with Minnesota law governing such cases. Collins was also awarded $1.4 million in attorneys’ fees and $163,466 in costs. The panel stipulated that interest would accrue on the award at a rate of 10 percent per year until paid.
Collins had also requested that RBC amend her Form U5, which records the reasons for her departure, but the panel denied that request.
RBC is disappointed in and disagrees with the panel’s decision,.a spokesperson for the firm told InvestmentNews by email.
"At RBC, we value diversity and inclusion, we do not tolerate unlawful discrimination, and we maintain a workplace culture where all employees are respected and treated fairly," the spokesperson said.
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