Governance News Alert: Office for Students (OfS) - New initial conditions of registration

The new initial conditions of registration and changes to application requirements are aimed at ensuring that institutions that register are ready to deliver high quality higher education and treat their students fairly, the Office for Students says. The reformed conditions follow consultation in February on new approaches to fairness and effective governance. The new initial conditions of registration – conditions C5, E7, E8 and E9 - will come into force on 28 August 2025. The OfS has published separate documents explaining each new condition, a “prohibited behaviours” list, a consultation outcomes document and details of how to register. 

The conditions and other resources can be found at: https://www.officeforstudents.org.uk/reforms-to-ofs-registration-requirements/ 

The new initial conditions of registration apply to providers in England seeking to register with the Office for Students, which includes seeking Degree Awarding Powers. Governors at providers in other nations may wish to reflect on the new conditions and consider where this relates to their own governance practice.  

At-a-glance: 

• New initial condition C5 relates to treating students fairly. Institutions seeking registration will be required to provide students with clear, easy to access information about what will happen if changes are made to their course, as well as fair processes for refunds and compensation and complaints. It replaces existing initial conditions C1 (guidance on consumer protection law) and C3 (student protection plan). Institutions registered under initial condition C5 will be required to publish a set of student-facing documents, forming their student protection plan
• New initial requirements on effective governance – E7, E8 and E9 - are aimed at ensuring that institutions have arrangements in place to provide a high-quality academic experience, safeguard financial sustainability, and deliver value for money for taxpayers
• These requirements include submitting a comprehensive business plan, with targets and objective, and having “key individuals” - staff and governors - with the knowledge and expertise to provide effective governance, deliver the business plan and detect, prevent and stop fraud
• The E9 document lays out in detail the competencies that individuals, such as the chair of governors, are expected to display. For initial registrations, the OfS would assess their knowledge and expertise through interviews
• A new “fit and proper persons” test will mean those in senior governance and management roles will be subject to checks on past conduct and due diligence.
• The new initial conditions and registration requirements will not generally apply to any application for registration made before 28 August 2025. This includes applications that the OfS is currently assessing or that are currently paused
• Conditions E7 (governing documents and the business plan) E8 (fraud and inappropriate use of public funds) and E9 (individuals) will replace existing initial conditions E1 (public interest governance) and E2 (management and governance)  
• If the OfS identifies particular regulatory risks posed by an institution, including an institution with an application currently paused, the OfS may consider whether to apply one or more of the new initial conditions, or parts of those conditions, to that institution
• The OfS is also implementing changes to the registration process to “incentivise the submission of high quality applications” and make the process more efficient. It will allow the OfS to more quickly identify and refuse applications
• The new requirements for a registration application will not apply to any application by a registered provider for registration in a different category to the OfS Register
• The restriction preventing an institution from reapplying within 12 months of receiving a final decision by the OfS to refuse registration will not come into force until 1 January 2026 

Implications for governance: 

Registration with the OfS is the gateway to the regulated sector in England and it allows institutions to access significant public and student funding.  

The OfS reforms to the registration requirements come in the wake of evidence that a number of partnership arrangements, some with non-registered institutions, have been characterised by low quality provision and even fraudulent activity.  

The new conditions of registration are a precursor to the OfS’s 2026 plan to require franchise delivery partners teaching more than 300 students to be fully registered.   

As it stands, the new conditions of registration will only apply to institutions looking to register after the end of August and will not be applied in retrospect. Nevertheless, governors of universities and colleges that are already registered will be interested to note the areas of focus and emphasis in the new conditions. This may include conducting internal assessments against the new initial conditions of registration as part of ensuring governance effectiveness and institutional oversight.  

Condition C5: Treating students fairly highlights the importance of a fair refund and compensation policy and of the provision of fair, accurate and clear information on courses, fees, ancillary services such as library services, accommodation and sports facilities and affiliations with other bodies, such as professional, statutory or regulatory bodies.  

It is published alongside a “prohibited behaviours list” which effectively bans clauses that allow a provider to unilaterally withdraw an offer once it has been accepted or that limit liability for disruptions, for instance during industrial action, or refund policies that impose unreasonable hurdles or delays. 

When assessing registration applications, the OfS can consider the claims made in advertising and marketing materials. Compliance here is presumably aimed at addressing concerns about providers exaggerating their successes and/or using agents who make false claims or omit important details, such as failing to make clear to applicants that student finance is in the form of loans. 

Providers in partnerships “share a responsibility to treat students fairly, including ensuring through their own due diligence processes that the other partner also treats them fairly” it warns.  

According to one commentator, the C5 conditions move institutions from a position of paying “due regard” to consumer protection guidance, to having to “demonstrate” that they treat students fairly in practice. Governing bodies may want to consider if their current policies and contracts would comply with this shift.  

Condition E7: relates directly to governing boards. E7 requires registering providers to have mechanisms to ensure that the governing body is of an appropriate size, that its members have appropriate expertise and skills, that it has access to advice from persons who are external to the provider and that the effectiveness or performance of the governing body is subject to appropriate review. 

It goes on to outline the need for “clear and appropriate arrangements for decision making”, including risk and audit functions, by clearly identifying people or committees with decision making responsibilities, the nature of those responsibilities, and appropriate governing body oversight of their decisions.   

The institution registering must submit a five-year business plan, outlining the nature of its provision, the characteristics of the cohorts of students it recruits or plans to recruit, and an understanding of the market, as well as objectives and targets. The OfS will assess whether the provider has the capacity and resources to deliver it. 

Condition E8: is concerned with fraud and misuse of public funds. Under this condition, the provider must have in place “comprehensive arrangements” to detect, prevent and stop conduct, or a lack of action, that could potentially amount to a fraud or inappropriate use of public funds.  

Such “arrangements” include, for instance, a conflict of interest policy, internal control processes, a risk register, a whistleblowing policy, an anti-bribery policy and training for staff relating to the awareness and detection of fraud. 

Institutions applying for registration must also meet Condition E9 which states that key individuals, including the chair of the governing body, must have the knowledge and expertise to “facilitate” compliance with the conditions of registration, delivery of the business plan and protection against and detection of fraud. 

Condition E9: lays out in detail the competencies that individuals such as the accountable officer and the chair of governors are expected to display and which the OfS will look for in registration interviews.  

In the consultation on the new conditions for registration, some submissions warned of increased bureaucracy, particularly for smaller providers, and a slower registration process. 

Concerns were also raised about creating a two-tier system where new entrants face tougher entry requirements than established providers, and about the practicality of requiring a five-year business plan when forecasting beyond two or three years is often unreliable.  

A briefing for institutions seeking registration will be held by the OfS on 16 September.