1. An update from the Regulator Natalie Penrose 19 May 2014

2. The aims of today An overview of current challenges and the future of regulation Share trends and emerging themes from regulatory activity in 13/14 Answer your questions and concerns

3. Part 1 The challenges and the future of regulation

4. Context and Introduction  A sector facing significant reform increasing uncertainty and risk  Stakeholders including government lack trust in the quality of some vocational qualifications  Both regulator and regulated need to change their game

5. Challenges  A rule-based QCF that in some cases is getting in the way of good qualifications  Universal accreditation creating incorrect perception that regulatory focus is only at market entry  The variety, numbers and scope of vocational qualifications - a confused and hard to navigate qualifications system  Balancing evidence of validity over time with the need for qualifications to be responsive and focused on employers skills requirements

6. Achieving Better Outcomes  Better quality, valid qualifications  More effective and intelligent regulation  Aligned with government strategy for qualification reform  Raised standards in the system

7. Regulation in balance 1.Advice and guidance to ensure clarity of requirements 2. Risk basis to focus regulatory activity 3. Enforcement to send clear signals and change behaviours 1 2 3

8. Enhancing the regulatory framework  General conditions of recognition – pretty good  We may introduce new conditions if needed  May need to supplement these with a range of guidance  statutory  non-statutory  We want to work with you to identify where guidance would be most helpful to support delivery of valid and reliable qualifications

9. Redirecting regulatory effort Accreditation has been primary regulatory approach for qualifications Intention: To redress the balance and regulate through the lifecycle of the qualification, using the validity to focus regulatory activity on high risk aspects Current Position Majority of regulatory effort in relation to qualifications is focused at the beginning of the lifecycle Planned Position Regulation through the lifecycle, informed by risk and validity argument a.Design and development b.Teaching c.Centre support d.Assessment preparation e.Assessment f.Marking, awarding, appeals a b c d e f

10. Stakeholders UsePerformanceAssessmentContentPurpose Evaluation Stakeholders agree the purpose of the qualification i.e. what it will enable candidates to demonstrate and interpretations that can be made. AOs ensure effective feedback. Stakeholders satisfied that the performance of candidates meets their needs as set out in the purpose. AOs ensure effective feedback. The content domain is clearly set out, accessible, appropriate for the stated purpose and agreed by stakeholders. The method of performance measurement is appropriate for the intended use of the qualification. The nature of the assessment and method of performance measurement are appropriate. The nature of the tasks that will form the assessment and the nature of the assessment are appropriate for the content. Redirecting regulatory effort: quality assurance through qualification cycle

11. Overview of Key Changes Advice and Guidance ValidityRefocused Regulatory ActivitySimplified Framework & Better Information Powerful Incentives RecognitionAccreditation volumes Monitoring & Enforcement - Ensure our policy intent is understood -All qualifications must have validity argument -At the heart of regulation of qualifications -For new bodies -Risk based for new offerings -High stakes -Sanction -Adopt sampling within routine audits -Risk and random -Through the life- cycle -Visible enforcement -Change QCF -More accessible information made available to users about qualifications -Strengthen use of visible incentives -Public admonishment of poor practice -Public celebration and pointing to good practice

12. Next Steps  Consultation on the future of the QCF rules including related issues such as GLH and the future nature of the qualification framework  This will not prevent you from continuing to offer unit- based/credit rated qualifications as long as these are valid, i.e. compliant with the general conditions - and we will set out the provisions for these to continue  Consultation will also clarify next steps following our risk/groupings work

13. Next Steps  We will issue a parallel document explaining in more detail what we expect our strategy to achieve and key aspects on its implementation  Accreditation  Identify areas for priority guidance  Stakeholder engagement  Targeted implementation of regulatory strategy – e.g. 16-19 vocational qualifications and apprenticeships  Take steps to create a more navigable system – removal of redundant qualifications, more accessible information

14. Part 2 Trends and themes from 13/14

15. How we currently work Recognition New Awarding Organisations Change of control Voluntary exit Monitoring Business as usual risk based monitoring Monitoring of event notifications Accreditati on Accreditation of new qualifications Enforcement - Action to address serious noncompliance

16. Recognition 81% failed Other recognition issues Recognition for existing Awarding Organisations Surrender of recognitionChange control Four applications received for recognition for an additional description of a qualification -Three rejected -One accepted (AQA) - Ten full surrenders of recognition - Two partial surrenders (for a description of qualification only) -30 Responsible Officer changes -8 Awarding Organisation name changes

17. Number of recognised Awarding Organisations Number of Awarding Organisations We are taking a pro-active approach to encourage voluntary surrender from inactive Awarding Organisations, combined with action to manage the surrender of Awarding Organisations who are in administration. This is resulting in a steady reduction in the number of recognised Awarding Organisations

18. Monitoring activity Number of monitoring visits A total of 211 monitoring visits and interventions have been conducted between April 2013 and March 2014 with numbers increasing after quarter 1 as capacity and capability increased

19. Monitoring programme - outcomes 211 visits and interventions between April 2013 and March 2014 Vocational qualifications  144 risk based interventions / visits. The highest risk AOs, based on Statement of Compliance analysis and entity risk data, were visited as a priority.  Over a third of the visits (40%) resulted in the need for further monitoring to address either minor or major non compliance: -45 closely monitored action plans for improvement to address minor compliance issues -12 closely monitored enforcement actions to address major non compliance: 7 Directions & 5 Undertakings  Additionally, there have been two withdrawals of recognition in cases of systemic and sustained failure Close and Continuous Monitoring  67 risk based and themed interventions / visits  A higher level of compliance has been found in this area, with only 12% of the visits resulting in action to address non compliance. -6 action plans to drive improvement in the accuracy of centre submitted marks and equalities and access arrangements -Two undertakings to address issues relating to the management of security breaches (WJEC) and improvement in the quality of marking (OCR)

20. Accreditation for new qualifications 11,384 accreditation decisions have been made in this 12 month period The volume of qualifications submitted for accreditation increased in quarter 1 and 2 of 2013/14, with a comparative overall decrease in quarters 3 and 4, with a small ‘spike’ in March 2014 In 2013 /14 over 90% of all new qualifications submitted for accreditation have been QCF qualifications

21. Enforcement action  We have issued seven Undertakings and seven Directions to Awarding Organisations in breach of the General Conditions of Recognition. There are common themes of failure to effectively manage risk, malpractice and conflicts of interest in relation to the regulatory action taken this year.  Two Awarding Organisations were prevented from issuing certificates and registering new learners because of the poor standards of qualifications and assessment. And both of these organisations have now had their recognition status withdrawn. 7 7 2 Regulatory action summary UndertakingsDirectionsWithdrawal of recognition General Qualifications200 Vocational qualifications572

22. Thank you And Q & A