In its latest Tier 4 sponsor guidance, the Home Office has introduced new powers in paragraph 138 of document 1, requiring educational oversight bodies to conduct assessments covering:
- the sponsor’s financial stability, management and governance; and
- quality assurance, including academic governance.
Financial stability, management and governance
The objective of this requirement is described as giving international students reasonable confidence that they should not be at risk of being unable to complete their course as a result of the financial failure of their education provider.
Key elements to be considered under this heading include:
- the details of the Tier 4 sponsoring organisation, trading names and addresses, key individuals, limited company number and relationships with other organisations;
- corporate governance arrangements including, in cases where the sponsor is part of a complex corporate structure, the arrangements relating to ownership and control both at local and high level. These will need to be evidenced in a ‘clear and easily understood format’;
- the track record of financial performance, including submission of full audited financial statements for the company that is the education provider covering two years immediately prior to the application. Where providers are not required to file full financial statements, they will need to provide full, externally audited financial statements. Details of debt or service charges where interest or charges are payable to directors, trustees or a related company must also be provided;
- information relating to the financial stability of the sponsor until their next educational oversight assessment to include:
- their business model and the projected ratio of international students to UK or EEA or Swiss students over the next four years;
- funding plans and the cost of face-to-face teaching provision for the projected number of international students;
- contingency arrangements to safeguard international students’ interests in the event of a sudden decline in international student numbers or institutional failure.
Quality assurance, including academic governance
The objective of this requirement is described as giving international students reasonable confidence in arrangements for maintaining academic standards and quality of the courses that their education provider offers.
Key elements to be considered under this heading include:
- the setting and/or maintenance of academic standards;
- the provision of learning opportunities;
- the enhancement of the quality of students’ learning opportunities; and
- the provision of information to students.
Disclosing information to UKVI
A note at the bottom of the section states that:
‘Assessments made by educational oversight bodies on an institution’s financial sustainability will be made on the basis of information provided to them, and are not to be relied upon by any body other than UKVI.’
Sponsors can therefore expect educational oversight bodies to share this information with UKVI.
