strategic approach to regulation
DESCRIPTION
Presenting Ofqual's new strategic approach to regulation. As used at awarding organisation events in April & May 2011.TRANSCRIPT
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