Yes, your employer may eventually dismiss you if you fail the RE5 exam, but failing once does not automatically mean that you can legally or fairly be fired.
In South Africa, an employer must balance two different responsibilities. The first is compliance with the Financial Advisory and Intermediary Services Act, commonly known as the FAIS Act. The second is compliance with South African labour law.
Your employer cannot allow you to continue providing financial advice or intermediary services if you no longer meet the applicable competency requirements. At the same time, the employer cannot simply ignore a fair employment process and dismiss you the moment you receive an unsuccessful result. If you have any questions about your RE 5 Exam come speak to Growth in Motion
The circumstances surrounding the failure matter. Your Date of First Appointment, the time remaining before your deadline, the number of attempts you have made, the support provided by your employer, your willingness to improve and the availability of alternative positions may all affect whether a dismissal is fair.
This article provides general information and should not be treated as individual legal advice. Employment contracts, company policies and personal circumstances differ. If you are facing possible dismissal, consider speaking to a qualified labour law professional or contacting the CCMA.
Failing the RE5 Once Does Not Usually Mean Immediate Dismissal
In my experience, most responsible Financial Services Providers do not immediately begin a dismissal process after an employee’s first unsuccessful RE5 attempt. If there is sufficient time remaining before the applicable deadline, the normal response is to help the employee identify what went wrong and prepare for a rewrite.
An employer may respond by:
- Allowing the employee to book another examination attempt
- Providing updated study material
- Paying for a preparation workshop or online course
- Arranging internal study sessions or coaching
- Providing access to mock examinations
- Granting reasonable study leave
- Placing the employee under closer supervision where legally permitted
- Reviewing whether temporary changes to the employee’s duties are necessary
A single failure does not prove that someone is incapable of doing the job. Many intelligent and experienced financial services professionals fail the RE5 because they use the wrong study method, misunderstand the wording of questions or struggle with examination pressure.
The employer should therefore consider the full situation instead of looking only at the word “failed” on the result.
Read our latest blog: How Do I Pass My RE5 Exam?
Why Your DOFA Deadline Matters
Your DOFA, or Date of First Appointment, is one of the most important facts in an RE5 employment dispute. It helps determine the deadline by which the applicable regulatory requirements must be completed.
If you still have several months remaining before your deadline, the employer may have more room to provide training, arrange another attempt and allow you to improve. Dismissing someone after one or two attempts while there is still reasonable time available could be difficult to justify, particularly when little or no support was provided.
The situation becomes more serious when the deadline is very close or has already passed.
If you have not completed the required examination by the applicable deadline, the Financial Services Provider cannot simply overlook the problem. Allowing an employee who no longer meets the requirements to continue performing regulated functions could expose the business to compliance consequences.
Depending on the employee’s role and regulatory position, the employer may need to:
- Prevent the employee from giving financial advice
- Stop the employee from performing regulated intermediary services
- Remove or update the employee’s status on the register of representatives
- Restrict client-facing duties
- Consider temporary non-advisory work
- Begin a formal incapacity consultation if no workable solution exists
This is why employees should not wait until the final weeks before their deadline to attempt the RE5. The more time you leave yourself, the more opportunity you have to identify weak areas, receive assistance and rewrite the examination if necessary.
Can an Employer Dismiss You for Legal Incapacity?
Where passing the RE5 is a legal requirement for the employee’s position, repeated failure may eventually create a form of incapacity. Put simply, the employee may become legally unable to perform an essential part of the job.
This is different from ordinary misconduct.
Failing an examination does not automatically mean that the employee was dishonest, disobedient or deliberately negligent. Treating the failure as misconduct without considering the real reason and circumstances may result in the wrong process being followed.
An incapacity process should examine questions such as:
- Is passing the RE5 genuinely required for this position?
- What is the employee’s applicable regulatory deadline?
- How many attempts has the employee completed?
- What were the employee’s previous scores?
- Did the employee receive current and suitable study material?
- Was training, coaching or study leave provided?
- Did the employee attend the training and make a genuine effort?
- Is another attempt realistically likely to solve the problem?
- Can the employee temporarily perform different duties?
- Are there suitable alternative vacancies in the business?
Dismissal should generally be considered only after consultation, reasonable assistance and a proper investigation of possible alternatives. The employer must also allow the employee an opportunity to respond and present relevant information.
What Support Should a Responsible Employer Provide?
An employer cannot write the examination on your behalf or guarantee that you will pass. However, where RE5 competency is required for your job, a responsible employer should provide a fair opportunity for you to meet that standard.
Current Study Material
Employees should have access to current material that covers the official qualifying criteria and relevant legislation. Telling an employee to search for random summaries online is not a reliable preparation strategy.
Outdated notes can be particularly dangerous. Regulatory requirements, terminology and study resources may change. Candidates should confirm that the material they use aligns with the current examination preparation guidance.
Structured Training
A structured RE5 workshop can help candidates understand how the legislation is tested. It should explain the reasoning behind the rules instead of encouraging students to memorise a list of answers.
This matters because the actual examination may present familiar principles through unfamiliar scenarios. You must understand why an answer is correct, not merely recognise the answer from a mock paper.
Diagnostic Mock Examinations
Mock examinations are useful when they are used to identify knowledge gaps. They become harmful when candidates repeat the same questions until they remember the answer sequence.
A good training process should examine why the candidate selected an incorrect answer. The trainer can then determine whether the problem involves legal knowledge, reading comprehension, terminology, time management or examination technique.
Reasonable Time to Prepare
Employees working in demanding sales or advisory environments may struggle to prepare if every day is filled with client meetings and performance targets. Where practical, an employer should consider dedicated preparation time or study leave before the examination.
A rewrite should also be scheduled sensibly. Booking another attempt immediately, without correcting the cause of the first failure, can produce the same result.
Financial Assistance
Company policies differ, but many employers pay for the initial RE5 examination and sometimes the first rewrite. Some businesses require employees to pay for later attempts or reimburse the employee after a successful result.
There is no universal rule that every employer must fund an unlimited number of attempts. The important point is that the policy should be clear, consistently applied and considered as part of the overall support provided.
How Many RE5 Attempts Should an Employee Receive?
There is no simple rule stating that every employee must receive a specific number of attempts before dismissal can be considered. Three attempts may be reasonable in one case and insufficient in another.
The quality of the opportunities matters as much as the number.
For example, three examinations written in quick succession without updated material, coaching or time to improve may not represent three meaningful opportunities. By contrast, several properly spaced attempts supported by training, study leave and performance discussions may demonstrate that the employer made a serious effort to help.
The employee’s conduct also matters. An employer will be in a stronger position if it can show that the employee repeatedly:
- Failed to attend scheduled training
- Ignored study plans and coaching
- Missed examination bookings without a valid reason
- Refused reasonable assistance
- Delayed preparation until the deadline
- Made no meaningful effort to address weak areas
Employees and employers both have responsibilities. The company must provide a fair opportunity, but the candidate must use that opportunity properly.
Why People Fail the RE5 Even After Studying
Candidates who fail the RE5 are not necessarily lazy or incapable. Many spend weeks studying but use methods that do not prepare them for the way the examination tests knowledge.
They Memorise Mock-Exam Answers
This is one of the most common mistakes I see. A candidate completes the same practice papers several times and eventually scores 90%. Unfortunately, that score may reflect memory rather than understanding.
The actual RE5 examination will not necessarily repeat the wording used in the mock examination. The principle may be tested through a different scenario, a negative question or two answers that both appear plausible.
Use mock examinations to test your understanding. After answering a question, explain why the selected option is correct and why the other options are wrong.
They Read Instead of Actively Studying
Reading pages of notes and highlighting paragraphs can create a false sense of progress. Active study requires you to recall, explain and apply the information without looking at the answer.
Useful methods include:
- Summarising each topic in your own words
- Explaining a rule aloud as if you were teaching someone
- Creating questions from the qualifying criteria
- Comparing easily confused roles and responsibilities
- Completing timed practice examinations
- Reviewing the reason behind every incorrect answer
They Misread the Question
Words such as “not”, “except”, “false”, “most appropriate” and “least appropriate” can completely change what the question requires.
The RE5 is partly a test of careful reading. A candidate may know the rule but still lose the mark by answering the question they expected to see instead of the question that was actually asked.
They Spend Too Long on Difficult Questions
The examination consists of 50 questions completed within two hours. This gives you an average of approximately 2.4 minutes per question.
If one complicated scenario consumes eight minutes, you may need to rush several easier questions later. Mark difficult questions for review where the examination system permits this, answer the questions you can manage confidently and return to the more challenging items.
They Do Not Practise Under Examination Conditions
Studying in short bursts while checking your phone does not reproduce the pressure of a timed examination. Complete at least some practice papers in a quiet environment with a strict time limit.
This helps develop concentration, pacing and confidence. It also reduces the shock of sitting in a formal examination environment.
What to Do in the First 48 Hours After Failing
The first 48 hours after an unsuccessful result are important. You may feel embarrassed, disappointed or frightened about your job. Take a moment to process the result, but do not disappear or avoid the conversation.
1. Review the Result Carefully
Download or request any available result information. Identify which areas affected your score and record your overall mark.
A score of 64% may require a different recovery plan from a score of 40%. One may suggest a small number of knowledge or technique gaps, while the other may require a complete change in preparation.
2. Speak to Your Manager Promptly
Your manager should hear the result directly from you. Request a short meeting and approach the discussion with honesty and a solution-focused attitude.
You could explain that you are disappointed with the outcome, have started reviewing the reasons and want to agree on a practical rewrite plan.
Avoid blaming the examination, the training provider or the testing system before you have properly assessed what happened.
3. Present a Rewrite Plan
Create a study plan covering the next two to four weeks, depending on your deadline and level of preparation. Allocate more time to your weakest areas and include timed practice sessions.
Your plan should identify:
- The topics requiring further work
- The study material you will use
- The dates and times allocated to studying
- The training or coaching you need
- Your proposed rewrite date
- How you will measure your progress
4. Request Specific Support
Do not simply ask your employer to “help you pass”. Make practical requests that can be considered and approved.
You might request:
- Updated preparation material
- Access to an RE5 workshop
- A mentor who recently passed the examination
- Two or three days of study leave before the rewrite
- Timed mock examinations and feedback
- Temporary adjustments to regulated duties where required
5. Confirm the Discussion in Writing
After meeting with your manager, send a short email confirming what was discussed. Include your proposed rewrite date, the support requested and any arrangements agreed upon.
Keep copies of your results, study plans, training attendance, examination bookings and relevant correspondence. Accurate records can prevent misunderstandings and show that you took the requirement seriously.
When an RE5-Related Dismissal May Be Fair
Consider the example of Sibongile, an insurance representative approaching the end of her applicable competency period.
After her first unsuccessful attempt, the employer pays for the examination, provides current study material and grants three days of study leave. Following a second failure, the business pays for an external preparation workshop. After a third failure, the employer arranges another rewrite and places appropriate restrictions on her activities.
Sibongile repeatedly misses internal study sessions, avoids mock examinations and makes little effort to work through the General Code of Conduct. She then fails again and reaches the applicable deadline without meeting the regulatory requirement.
The employer investigates alternative work but operates as a small brokerage with no suitable vacancies. It invites Sibongile to a formal incapacity consultation, gives her time to prepare, allows her to make representations and considers the full history before reaching a decision.
In this example, dismissal may be fair because:
- The RE5 is an essential legal requirement for the position
- The applicable deadline has been reached
- The employer provided material, training, leave and several opportunities
- The employee failed to use some of the support offered
- The employer considered alternative work
- No suitable vacancy was available
- A proper consultation and incapacity process was followed
When an RE5-Related Dismissal May Be Unfair
Now consider David, a wealth management consultant who still has considerable time before his applicable deadline.
David scores 64% in his first attempt. He pays for a quick rewrite because he is worried about his job, but he receives no study leave, updated material or training. He scores 60% on the second attempt.
The employer has vacant administrative positions that do not require the RE5, but these are never discussed. The morning after David’s second result, his manager hands him a termination letter based on a company rule described as “two strikes and you are out”. No consultation or incapacity inquiry takes place.
This dismissal may be unfair because:
- David still had time available to prepare for another attempt
- The employer provided little or no meaningful support
- He narrowly missed the pass mark on his first attempt
- No structured improvement plan was considered
- Suitable alternative vacancies may have been available
- David was not given a fair opportunity to respond
- No proper incapacity consultation was followed
An internal policy does not automatically override labour law. The employer must still consider the employee’s individual circumstances and follow a fair process.
Can Your Employer Move You to an Administrative Role?
Possibly, but redeployment is not guaranteed.
A business should consider whether suitable alternative work is available, especially where the employee can perform valuable duties that do not involve regulated advice or intermediary services. Possible options may include certain administrative, onboarding, support or back-office functions, depending on what those positions actually involve.
However, an employer is not necessarily required to create a permanent position that does not exist. The employee must also have the skills to perform the alternative work, and the proposed role must be operationally and financially practical.
The important point is that available alternatives should be genuinely considered before dismissal becomes the final option.
What Should You Do If You Believe the Dismissal Was Unfair?
If you are dismissed after failing the RE5 and believe the process was unfair, gather all relevant documents immediately.
These may include:
- Your employment contract and job description
- Your DOFA and regulatory records
- RE5 results from every attempt
- Proof of examination bookings and payments
- Requests for study leave or training
- Emails between you, your manager and HR
- Records of workshops or study sessions attended
- Notices relating to counselling or incapacity proceedings
- Information about alternative vacancies
- Your dismissal letter
You may refer an unfair dismissal dispute to the CCMA, but strict referral time limits apply. Do not delay in obtaining advice or starting the appropriate process.
The Bottom Line
Your employer may be able to dismiss you if repeated RE5 failures eventually make you legally incapable of performing an essential part of your job. However, a failed examination result does not give the employer permission to ignore fairness.
The strongest approach is for both parties to act early.
The employer should provide reasonable guidance, suitable resources, meaningful opportunities to improve and a fair consultation process. The employee should attend training, follow a structured study plan, communicate honestly and book attempts well before the applicable deadline.
If you have failed the RE5, do not treat the result as the end of your financial services career. Treat it as diagnostic information. Identify what went wrong, speak to your employer, document your plan and change the way you prepare.
Many candidates do not need to study longer. They need to study differently. A focused approach built around understanding legislation, applying principles, improving reading technique and practising under timed conditions can turn the next attempt into a successful one.