The OfS introduced ongoing condition of registration E10 on registered higher education providers with effect from 31 March. In broad terms, E10 places significant additional obligations on in-scope providers where they are “lead providers” in specified subcontractual arrangements.
Subject to some specific exemptions, E10 applies where either:
- The provider has one or more “relevant subcontractual arrangements” and the total number of students registered on the provider’s “relevant subcontractual courses” is 100 or more;
- The provider has concluded, or reasonably should have concluded, that there is a material likelihood that the total number of students registered on its existing or future relevant subcontractual courses will be 100 or more. There are further provisions as to how this calculation is to be applied in any academic year. In most cases, the OfS expects the obligations in condition E10 will apply one calendar year before the start of the academic year in which the provider expects to meet the threshold.
The OfS may amend the 100 student thresholds in future.
In scope providers are subject to an overarching obligation to “ensure that any risks to the interests of students and/or taxpayers posed by its existing and future relevant subcontractual arrangements are effectively identified and addressed”. The condition specifies that this includes but is not limited to, maintaining and operating in accordance with a single “subcontracting information source” (SIS). The condition specifies the minimum content of the SIS through detailed “minimum content requirements” (MCRs) and also controls how this information is presented through “content principles”. The content principles permit other information and provisions to be included in the SIS, but these must not contradict, undermine or conflict with the MCRs, and must include a provision making clear that the MCRs take precedence over other content. The content principles also prohibit providers from including information and provisions in other documents which could reasonably be considered to contradict, undermine or conflict with the MCRs.
The SIS can either be a single comprehensive document or a summary document referring to other documents (but it must then summarise their content (insofar as relevant). The guidance to E10 states that it must be clear how each policy applies to the provider’s subcontractual provision.
Providers are also required to have the capacity and resources necessary to operate in accordance with their SIS.
A “relevant subcontractual course” is a course provided under a “relevant subcontractual arrangement” where the students hold or will hold a contractual relationship with the provider and 50% or less of the total course delivery hours are provided (or will be provided) by the provider’s staff or contractors. Further rules set out how “total course delivery hours” are calculated.
In-scope providers are also required to include a “statement of subcontractual rationale” in their financial statements, as well as detailed information about fee retention. A range of matters relating to E10 must also be reported to the OfS under the reportable events regime.
A subsequent blog will consider the definition of “relevant subcontractual arrangements” and the exemptions.
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