Welcome

Strategic approach to regulation

The context for change and getting the balance right

Fiona PethickDirector of Regulation

Today’s focus…

The impact of our consultations

Regulating strategically

What is expected of awarding organisations and the regulator

Timetable for implementation

Ofqual’s Statutory Objectives

The 2009 Apprenticeship, Skills, Children and Learning Act (ASCL) gave Ofqual five statutory objectives:

The Qualifications Standards ObjectiveThe Assessment Standards ObjectiveThe Public Confidence ObjectiveThe Awareness ObjectiveThe Efficiency Objective

Current context

Ministerial endorsement of Ofqual’s role as regulator of both standards and efficiency

DfE White paper“The independent regulator of exam standards, Ofqual, plays a vital role“

BIS Skills for Sustainable Growth Strategy“…the qualifications regulator, Ofqual, will hold each awarding organisation to account for its qualifications being fit for purpose and meeting the needs of users such as industry and higher education.”

Ofqual’s approach is being built around a single Strategic Model for the Regulation of awarding organisations and their Qualifications

Timeline for transition to Recognition Conditions

May 2011 July 2011 May 2012

May to July 2011 July to May 2012

Conditions of Recognition Published

Transition Conditions ceaseConditions of Recognition applyProcess to provide assurance to Ofqual

Process to declare compliance closes

Events for AOs - the new regulatory model Visits to AOs throughout periodEach AOs governing body must assure itself that the AO is working in line with the conditions and can give such an assurance to Ofqual

These are the dates we are working to and are subject to the approval of the Ofqual Board on 4th May 2011

Changing the balance – Regulatory relationships and accountability

We will undertake our regulatory role by…

Acting in accordance with the better regulation principles

(transparent, targeted, consistent, accountable and proportionate) Basing our decisions on evidence

Targeting our interventions in response to our assessment of

risk posed to standards, learners, efficiency and public confidence in regulated qualifications

Making sure our staff have the skills and knowledge to

undertake their roles

Engaging with each organisation we regulate in a fair and open

manner Using proportionate enforcement sanctions where necessary

Contributing evidence-based advice on policy options that

affect regulated activities and organisations

We will require the governing body of each awarding organisation we regulate to:

Make sure the organisation behaves in accordance with the conditions of recognition to which it is subject and that it has the expertise and resources to do so

Be accountable for the quality and standards of the qualifications it awards and the efficiency with which it operates

Respect our role as a regulator and cooperate with us

Take remedial action if things go wrong and ensure we are informed promptly

So what does the change in relationship mean?

Each awarding organisation needs to take responsibility for compliance

Each Governing Body needs to actively confirm the compliance of its awarding organisation with the conditions and hold its awarding organisation to account for its performance

Responding to the consultations

Fiona PethickDirector of Regulation

Key messages from the consultation From Transition to Transformation

Focus on regulation of awarding organisations and qualifications

Conditions of Recognition

Broad support and endorsement

Challenge via responses and at consultation events

Yougov report – www.ofqual.gov.uk

We have undertaken a thorough review of the draft conditions of recognition.

Provide greater clarity e.g. role of the ‘accountable officer’, notification of incidents, accessibility of qualifications.

They may therefore ‘look’ quite different.

Next steps From Transition to Transformation

Key messages from the consultation Economic Regulation

Concerns raised around whether the approach set out is proportionate

Stakeholders seeking better understanding of relationship between standards and efficiency objectives

We received detailed comments on economic concepts set out in paper and approach to securing ‘value for money’

Key focus of transformation – integrated approach to regulation – appropriately balancing our objectives

System in which standards are not maintained and public confidence not secured cannot be truly efficient

Next steps Economic Regulation

Reviewing recognition conditions

Publish response to consultation feedback and next steps (May)

Publish economic research plan including (May):

Terms of Reference innovation stock take,Thematic research.

Feed into finalisation of wider sanctions policy

Collaboration with other stakeholders on ‘efficiency’ issues, e.g. SFA/OFT

Key messages from the consultation Complaints and Appeals

Endorsement for an independent appeals mechanism.

All learners should have access to the facility.

The findings of an independent appeal body to be binding - no consensus.

Difficult questions about the location of learners. Who could/should access such a mechanism?

Next steps Complaints and Appeals

The specifics of implementation

Define the purpose and objectives of an independent appeals body

Consider in detail the issues raised from the consultation with stakeholders

Develop a proposal for the Ofqual Board on scope and operational arrangements

Plans for implementation

Clare Gilligan Head of Awarding Organisation Performance

Regulating strategically and the role of risk

Risk based regulation

‘Systematised decision making frameworks and procedures to prioritise regulatory

activities and deploy resources, principally relating to inspection and enforcement, based on

an assessment of the risk that the regulated firms pose to the regulator’s objectives’. [Dr Julia

Black, LSE]

Ofqual’s approach is being built around a single strategic model for the regulation of awarding organisations and their qualifications

Our new approach is built around a strategic model for the regulation of awarding organisations and their qualifications

The Conditions – A consultation example

Collect and analyse sufficient data to enable it to monitor whether any features of its regulated qualifications or units disadvantage particular groups of learnersTake reasonable steps to identify and preclude any unjustifiable barriers in its qualifications and units that might prevent learners who share particular protected characteristics from demonstrating their knowledge, understanding or skillsJustify any barriers to units or qualifications that remain

The Conditions – a new look

Condition D2 Accessibility of qualificationsD2.1 An awarding organisation must ensure that it complies with the

requirements of Equalities Law in relation to each of the qualifications which it makes available.

D2.2 An awarding organisation must monitor qualifications which it makes available for any feature which could disadvantage a group of Learners who share a particular Characteristic.

D2.3 Where an awarding organisation has identified such a feature, it must –

remove and disadvantage which is unjustifiable, andmaintain a record of any disadvantage which it believes to be justifiable, setting out the reasons why in its opinion the disadvantage is justifiable.

Our new approach is built around a Strategic Model for the Regulation of awarding organisations and their Qualifications

Our new approach is built around a Strategic Model for the Regulation of awarding organisations and their Qualifications

Our new approach is built around a Strategic Model for the Regulation of awarding organisations and their Qualifications

Explaining risk - 1

AOs

Qualifications

High Risk

High Risk

Low Risk

Low Risk

TO BE

= high scrutiny

Over time, the curvesmove towards originas confidence grows

Explaining risk - 2

AOs

Qualifications

High Risk

High Risk

Low Risk

Low Risk

TO BEHigh risk qualsacross a range of AOs

Low risk AO with somehigh risk quals

High risk AO with a rangeof risk of quals

Our new approach is built around a Strategic Model for the Regulation of awarding organisations and their Qualifications

Types of regulatory action

Public report

Making qualifications subject to an accreditation requirement

Imposing new conditions of recognition

Issuing a direction

Withdrawing recognition

Discussion Points

Refreshment Break

The rules of the road

Bryan HorneTeam Leader Awarding Organisation Monitoring

The Recognition Conditions

Having met the recognition criteria, each recognised AO is then subject to the recognition conditions.

The recognition conditions set out the parameters within which each recognised AO must operate

They provide a clear set of expectations of the regulator from the regulated

The conditions do not set out how each AO must work - but the outcomes it must achieve

Timeline for transition to Recognition Conditions

May 2011 July 2011 May 2012

May to July 2011 July to May 2012

Conditions of Recognition Published

Transition Conditions ceaseConditions of Recognition applyProcess to provide assurance to Ofqual

Process to declare compliance closes

Events for AOs - the new regulatory model Visits to AOs throughout periodEach AOs governing body must assure itself that the AO is working in line with the conditions and can give such an assurance to Ofqual

How do qualifications become regulated?

Regulated qualifications

Shift in perception from accreditation as a ‘kitemark’ to a process of risk based regulatory action

We expect each awarding organisation to own and quality assure its qualifications

Certain qualifications will be subject to an accreditation requirement

Regulating registered qualifications

awarding organisation has developed, designed and quality assured a new qualification it wants to offer

Is the qualification on the Ofqual list of ‘qualifications that must be accredited? Does my awarding organisation have specific conditions of recognition that mean this

qualification must be accredited?

No (to both Qs) Yes (to either Q)

Accreditation process involving full scrutiny

Submission goes straight to the Register

What you need to do in the short term

Follow the process to declare compliance with the recognition conditions – once this is completed, you will be able to move to a risk based approach to qualification submissionReview your quality assurance arrangements and ensure that they are sufficiently robust to guarantee that all future submissions fully meet our requirements

What is regulatory assurance?

Regulatory assurance We will determine the degree of regulatory assurance required based on our appraisal of the risks posed by an awarding organisation or its qualifications

Conditions of Recognition

Awarding organisation accountability

Ofqual assurance – level and type based on risk

New assurance arrangements

May 2011 July 2011 May 2012

July to May 2012

Conditions of Recognition Published

Transition Conditions ceaseConditions of Recognition applyProcess to provide assurance

Process to declare compliance closes

Risk based approach to assurance begins – combined with engagement activity

Risk based approach to assurance fully implemented

May 2012 onwards

What if you don’t comply with the conditions?

Focusing on outcomes

We have consulted on our approach

We have set out our commitment to observe the Macrory principles for regulators on taking action, seeking redress and imposing sanctions

We will be publishing our draft Taking Regulatory Action policy and inviting further comments before it is finalised

Regulatory Justice: Making Sanctions Effective, November 2006

Taking regulatory action

ASCL Act 2009 - some statutory powers of enforcement

Actions to encourage

Actions to secure

Types of regulatory action

An awarding organisation to put things right

Public report

Making qualifications subject to an accreditation requirement

Imposing new conditions of recognition

Issuing a direction

Entry and inspection condition

Fee capping condition

Withdrawing recognition

Ofqual’s approach is being built around a single strategic model for the regulation of awarding organisations and their qualifications

Fiona Pethick (Chair)

Clare Gilligan

Bryan Horne

Questions to the panel

Next steps and timetable

Fiona Pethick Director of Regulation

Recapping the timeline

May 2011

Conditions of Recognition Published

July 2011

Transition Conditions ceaseConditions of Recognition applyProcess to provide assurance to Ofqual commences

May 2012

Process to declare compliance closes

July to May 2012

Risk based approach to assurance beginsFurther communication around:

• Changes to style/format of assurance activity• Phasing out of other existing regulatory requirements• Evolution of the ‘contact point’/customer relationship approach

September 2011

Criteria for the determination of qualifications subject to an accreditation requirement published

Risk based approach to assurance fully implemented

May 2012 onwards

Key Messages