RTOs and CRICOS providers cannot transfer their registration from one legal entity to another.
However, a change in company shareholdings without altering the ABN/ACN allows the provider to continue operating if ASQA is notified. This process, known as a change of ownership, requires specific compliance measures.
Our guide covers critical elements, including regulatory frameworks, notification requirements, and necessary documentation.We also explain ASQA’s response to ownership changes, including potential audits and scrutiny. SKG Consultancy Services offers comprehensive support to ensure a smooth and compliant ownership transition, from initial notification to compliance audit preparation.
Background and Policy on Change of Ownership Registered Training Organisation
ASQA’s policies regarding changes in ownership for Registered Training Organisations (RTOs) and Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) providers aim to maintain high standards and ensure compliance within the vocational education and training sector. Regulatory Compliance and Quality Assurance ASQA evaluates registration applications based on compliance with the Vocational Education and Training (VET) Quality Framework and the Education Services for Overseas Students (ESOS) Framework. Ownership changes undergo scrutiny to prevent circumvention of initial registration standards.Changes in Scrutiny Post-2018
ASQA implemented revised processes in 2018, subjecting significant changes in ownership to increased scrutiny. This ensures new owners maintain expected quality and compliance standards. Increased Regulatory Oversight Providers undergo compliance audits to assess compliance with regulatory requirements upon notification of significant ownership changes. ASQA maintains heightened scrutiny for 12 months after the change to ensure ongoing adherence to standards.Fit and Proper Person Requirements
New owners must meet Fit and Proper Person requirements, demonstrating suitability to operate a training provider. This involves providing declarations and undergoing assessments. Financial Viability. New owners must demonstrate financial viability to ensure sufficient resources for quality training outcomes. This includes completing assessment tools provided by ASQA. ASQA’s policies aim to prevent compromise of education quality and protect student interests while maintaining sector integrity.Registration Requirements
Training providers, including RTOs and CRICOS providers, must adhere to strict registration requirements outlined by ASQA. These requirements include compliance with the Vocational Education and Training (VET) Quality Framework and, for providers training overseas students, the Education Services for Overseas Students (ESOS) Framework. Critical components of registration requirements include:- VET Quality Framework: Compliance with standards such as the Standards for Registered Training Organisations (RTOs) 2015, Fit and Proper Person Requirements, Financial Viability Risk Assessment Requirements 2021, and Data Provision Requirements 2020.
- ESOS Framework: Adherence to regulations outlined in the Education Services for Overseas Students Act 2000, National Code of Practice for Providers of Education and Training to Overseas Students 2018, ESOS Regulations 2019, and ELICOS Standards 2018 (if applicable).
- General Obligations: Cooperate with ASQA’s guidance and compliance monitoring, pay all required fees, and comply with additional licensing requirements for specific VET courses.
ASQA’s Response to Changes of Ownership
ASQA maintains a rigorous response framework to ownership changes within Registered Training Organisations (RTOs) and Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) providers.- Recording Notifications: ASQA records all notifications of material change for a change of ownership upon submission of required evidence.
- Compliance Audits: Providers undergoing significant ownership changes are subject to compliance audits to review their adherence to regulatory frameworks. These audits focus on assessing compliance with relevant legislative requirements and standards.
- Increased Scrutiny Period: Following ownership changes, ASQA applies increased scrutiny for 12 months to ensure ongoing compliance ad quality assurance within the training provider. Based on ASQA’s assessment, additional regulatory actions, including further compliance audits, may be triggered during this period.
How SKG Consultancy Services Can Help
SKG Consultancy Services offers comprehensive support to Registered Training Organisations (RTOs) and Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) providers in navigating the complexities of changing ownership.- Notification Process: We assist in utilising ASQA’s online portal and ensure accurate completion of the Notification of the material change form.
- Evidentiary Requirements: Our team guides clients through completing Fit and Proper Person declarations and Financial Viability Risk Assessment Tools.
- Compliance Support: We provide expert guidance to ensure compliance with regulatory frameworks, including assistance with self-assessment tools for compliance.
- Specific Notification Requirements: We ensure timely and accurate notification to ASQA for VET-only and CRICOS providers.
- Regulatory Compliance: SKG ensures understanding and adherence to compliance history, scope of registration, student arrangements, and record-keeping requirements.
Partnering with SKG Consultancy Services streamlines the change of ownership process, ensuring a smooth transition while maintaining compliance and quality standards.
Before changing ownership, it’s essential to assess the compliance history of a training provider. SKG Consultancy Services offers expert assistance in evaluating compliance status, identifying non-compliance, and understanding potential regulatory actions. Key considerations include:- Current Registration Period: Determining the duration of the provider’s current registration.
- Past Audits: Review the last ASQA performance assessment date to assess recent compliance.
- Ongoing Regulatory Activity: Identifying any ongoing investigations or actions by regulatory bodies.
- History of Non-Compliance: Assessing past instances and associated sanctions, if any.
- In addition to compliance evaluation, SKG Consultancy Services provides comprehensive support for RTO registration services.Our consultancy streamlines the ownership change process, offering expert guidance on regulatory requirements and documentation assistance.