The Office for Students (OfS) is the independent regulator for higher education providers in England. Its primary role is to ensure that students receive a high-quality education, have a positive experience, and are protected as consumers.
A key mechanism the OfS uses to regulate higher education providers is by setting Conditions of Registration. These include requirements related to the financial sustainability, management and governance of the institution as well as academic quality, and student protection. Providers must meet these conditions to access public funding and student loan arrangements and to be officially recognised as part of the regulated higher education sector in England.
Strengthened Governance and Management Rules for New Providers
The OfS proposes to introduce a new condition of registration-Condition E7-which will consolidate and enhance existing governance and management requirements for new entrants.
What is Regulation E?
Regulation E focuses on ensuring that providers have effective leadership and governance arrangements to meet public interest governance principles and deliver high-quality education. This new condition will replace the current initial conditions (E1 and E2) and will apply at the point of registration, after which providers will be subject to the ongoing conditions E1 and E2.
Moving from Self-Assessment to Assessment of Governing Documents
The OfS intends to shift from the current self-assessment model to a more robust direct assessment of governing documents, aiming to improve assurance that new providers have the governance capabilities to meet regulatory standards. The consultation emphasises that providers must have governance arrangements that are proportionate to their size and complexity, rather than following a rigid "one-size-fits-all" model.
Assessment under Condition E7 will specifically focus on documents related to the governing body and its associated processes, including:
- Governing body terms of reference
- Risk and audit documentation
- Conflict of interest policies
In addition, the OfS proposes to make the reference to “fit and proper persons” in the Public Interest Governance Principles more explicit, ensuring that institutions adopt robust internal processes when appointing key decision-makers. The OfS will also conduct interviews with senior leaders and board members to assess their understanding of governance arrangements and regulatory expectations.
Another key change is the proposed requirement for new applicants to submit a five-year business plan. This plan should reflect medium-term strategic and financial planning, aligned to the provider’s size and context. The OfS anticipates that this measure will reduce registration delays by clarifying expectations upfront.
Although these proposals will initially apply only to new providers post-consultation, the OfS has indicated that they could inform future regulatory developments across the wider sector.
Alignment with the UK Competition and Markets Authority Oversight
The OfS consultation sits within a broader regulatory environment that has seen similar action from the UK Competition and Markets Authority (CMA).
In May 2023, the CMA updated its consumer protection guidance for universities and higher education providers. This guidance underscores that students, as consumers, are entitled to protections under the Consumer Rights Act 2015, and it places renewed emphasis on transparency, fairness, and accountability.
The CMA’s revised guidance focuses on several key areas:
- Limitation of Liability Clauses: The CMA has warned providers that clauses attempting to limit liability in student contracts (e.g., exclusions of responsibility during industrial action or public health emergencies) may breach consumer law if deemed unfair.
- Transparency of Information: Higher education providers must now ensure that pre-contractual information—such as course content, delivery methods, tuition fees, and likely changes—is clear and accessible to allow students to make informed decisions.
- Fair Terms and Conditions: The CMA stresses that contractual terms should be balanced and not heavily weighted in favour of institutions.
- Complaints Handling: The updated advice calls for transparent and effective complaints processes that are accessible to students.
A Tightening Regulatory Approach?
Taken together, the OfS and CMA actions are aimed at elevating standards across the sector.
While the CMA’s focus lies primarily on upholding students' consumer rights, the OfS’ new proposals focus on ensuring that governance, management, and business planning at new providers are robust enough to deliver quality education and meet student expectations.
Ultimately, both regulators are contributing to a system where higher education providers are held to account not only for the quality of education they deliver but also for their contractual responsibilities toward students.
If you have any questions regarding the issues raised in this article please contact Reshma Derasari at reshma.derasari@lbmw.com