Part 1: Proposals for new initial condition C5 - Treating students fairly

166. If, as proposed, we remove initial condition C3 for a provider seeking registration, it would not submit, at registration, the student protection plan that is required for that condition. We could nevertheless continue to impose ongoing condition C3 and that would mean requiring a provider, after its registration, to submit for approval the risk assessment and plan required by that condition. We think this would create additional work for the provider and the OfS without providing additional benefit in terms of student protection. This is because the documents a provider would publish following its registration under proposed initial condition C5 would form the provider’s student protection plan and, for the reasons set out above, would provide more comprehensive protection for students.

Published information available for students about student protection measures

167. Our proposals for the post-registration publication of student-facing documents to constitute a provider’s student protection plan (Proposal 8) would ensure students have access to practical and comprehensive information about a provider’s plans and obligations in relation to risks to continuation of study.
168. We do not foresee a reason that a provider would not wish to publish its student-facing documents on successful registration, but, if necessary, we may consider introducing an ongoing condition of registration compelling publication for all providers registered under proposed initial condition C5. To do so, we would conduct further consultation activity.
169. This proposed new-style student protection plan would not rely on a provider’s risk assessment (which may be inaccurate or out-of-date as described at paragraph 154). We therefore think that this would produce a more comprehensive and consistent approach across providers than is currently the case for condition C3 student protection plans. We suggest that the decoupling of a provider’s student protection plan from its assessment of related risks should also ensure that the student protection plan retains its currency after registration. We think the time and effort saved in updating and reapproving student protection plans could be more valuably spent on implementing student protection measures where needed, and this would be a more efficient, effective and economic use of the resources of providers and the OfS.

Managing the risk of whole provider closure

170. We have considered how we would manage the risk of market exit for a provider registered under initial condition C5, given that it would not be required at registration to submit its plans for this eventuality as part of its condition C3 student protection plan. As explained above, we no longer rely on condition C3 in these circumstances and, instead, use the stronger provisions in condition C4 or impose targeted specific ongoing conditions of registration.
171. We plan to continue this approach for any provider registered on the basis of proposed initial condition C5. Our experience of working with providers at risk of exit is that far more detailed planning is necessary than is currently required (or possible in hypothetical terms at registration) within a condition C3 student protection plan.

No proposed change for providers that are already registered

172. On 2 December 2024, the OfS announced temporary changes to its operations to allow a greater focus on the financial sustainability of the sector and of individual providers. In the context of increased financial risk, it is particularly important that the OfS gives careful thought to its regulatory approaches in relation to student protection, and we are actively considering this for providers that are already registered.³⁵
173. The proposals in this consultation would have no direct effect on a provider registered under existing initial condition C3, as ongoing condition C3 would continue to apply in this situation. However, we recognise that proposing to strengthen protections and ensure consistency of information for students of providers registered under proposed initial condition C5 would mean that different arrangements would be in place for different groups of students, depending on when their provider was registered.
174. Changes to ongoing regulatory requirements for registered providers are not within the scope of the current consultation. However our ultimate aim is to strengthen protections and ensure consistency of information for all students at all OfS-registered providers. In doing so, we would aim to align ongoing requirements for all registered providers, and we therefore envisage that having different requirements for different providers would be an interim position. Proposals to achieve this alignment, and to ensure that all students are treated fairly on an ongoing basis, would form part of a future consultation on ongoing requirements for currently registered providers.

35 OfS, ‘“Bold and transformative action” needed to address financial sustainability’.