Medr: Regulatory Framework

Medr’s new cross-tertiary education regulatory system is the first of its kind in the UK. The framework, which fulfils several statutory duties under the Tertiary Education and Research (Wales) Act 2022, is the product of engagement across tertiary education in the principality, including two formal consultation periods. As well as the 142-page full framework, which includes its regulatory approach, Medr has published: a statement of intervention powers, a quality framework, a learner engagement code and a frequently asked questions document. An online application portal is being developed which will allow providers to submit the information needed in order to apply to become registered. The application process will open for providers shortly, and further information will be provided. A register, applicable to all providers of higher education, will then be operational from August. The key points below are taken from the regulatory framework unless otherwise stated.

The full framework document can be found at: https://www.medr.cymru/en/regulatory-framework/

At-a-glance

• Financial sustainability is an initial and ongoing condition of registration. The provider must have credible plans, based on reasonable assumptions, that show it has sufficient financial resources to operate in the short term for one to two years, medium term for three to five years, and in the long term, delivering a high quality learning experience and, where applicable, high-quality research and innovation (p39)
• During the initial registration process, Medr will carry out a comprehensive assessment of the provider financial performance and position to inform its risk judgement, based on evidence supplied by the provider, including audited financial statements, forecasts, commentary, business plans, details of borrowing etc (p41)
• Under the initial and ongoing condition of governance and management (including financial management) a provider must demonstrate that its particular arrangements are appropriate for its size, its complexity and the risk environment in which it operates. In gauging compliance, Medr may consider a provider’s governance code, the visibility and strength of its commitment to the code, the extent of openness and accountability, good governance practices and its adherence to the principles and structures set out in providers’ governing documents. When first seeking registration, each provider is required to submit a self-evaluation of the adequacy and effectiveness of its governance and management arrangements (p51-52 and 55)
• The governing body must be collectively responsible and accountable for overseeing a provider’s activities, for determining its future direction, fostering an environment in which the provider’s mission is achieved and ensuring the provider is fulfilling its purpose with the resources available. This includes under sub-contractual arrangements (p52)
• Providers must have policies and procedures relating to risk management, estates management and environmental sustainability, internal and external audit, assurance processes and mapping, risk assessment of adverse events, compliance with relevant legislation, a robust framework in place for conflicts of interest and whistleblowing and a regular review schedule of these duties (p55)
• An institution must demonstrate that its provision, including that delivered on its behalf, is of good quality and that it engages with continuous improvement. To comply with this condition, providers must take account of the quality Framework, achieve satisfactory external quality assessment outcomes, and have acceptable performance data. Compliance with this condition will be monitored eg through results of external quality assessments, including Estyn inspections and QAA review, data monitoring and Annual Assurance Return (p69)
• Providers must have in place effective arrangements to support and promote learner and staff welfare. These must be designed in collaboration with staff, where appropriate working with trade unions, and with an understanding of the broader context of legislation and national policy (p74)
• Providers must conduct a governing body-approved staff and learner welfare self-evaluation. Providers are not required to submit evaluations to Medr but it can call them in if concerns and risks are raised or identified. Based on their evaluation, providers must devise a welfare action plan (p74)
• A condition relating to the Welsh language states that registered providers and those funded by Medr must take all reasonable steps to promote and encourage greater use of the Welsh language across the provider, increase demand for, and participation in, tertiary education delivered through the medium of Welsh and promote and encourage research and innovation activities which support the Welsh language. This will require the governing body to publish and maintain a Welsh Language Strategy (p77)
• Providers must have in place a learner protection plan approved by Medr (p83)
• The governing body must comply with the requirements of the learner engagement code and provide evidence to demonstrate compliance with it. Providers must publish a commitment to embed and support impactful learner engagement in decision-making. They must review this commitment and evaluate its effectiveness (p100)
• Under the equality of opportunity condition, providers must deliver measurable outcomes to: increase participation in tertiary education by people from under-represented groups; retention, reduction of attainment gaps between different groups; and provision of support for under-represented groups. Medr will monitor compliance with this condition including by analysis of data and learner surveys (p101)
• A provider registered with or funded by Medr must have in place a procedure for investigating complaints made by learners and former learners and take reasonable steps to make the procedure known to students (p113)
• The governing body must have regard to advice or guidance given by Medr. It must also provide Medr with such information, assistance and access to the provider’s facilities, systems and equipment as Medr may reasonably require to undertake its functions (p115, p118)
• Medr must be satisfied as to the information provided to prospective students about the registered provider, its courses, and its terms and conditions of contracts with students. Providers must also have a fee limit statement approved by Medr (p128)
• The 2022 Act gives Medr the power of intervention, ranging from providing advice and assistance, directions and notices to deregistration. It would not normally use its powers to address minor non-compliance, especially where a provider has robust processes or is actively taking all reasonable steps to resolve issues (p 7, Statement of Intervention Powers document)

Implications for governance:

Medr’s new cross-tertiary regulatory framework is aimed at ensuring high quality provision that is focused around the needs of the learner, creating a flexible and joined-up system that meets the challenges of a changing economy and society.

Governors in higher education in Wales will already be familiar with many of the demands of Medr’s regulatory conditions, such as the requirement for financial sustainability and procedures for investigating complaints.

The 148-page framework goes into significant detail on these and the 15 other conditions that institutions must fulfil. Alongside it, Medr has published supplementary documents to provide more information about the demands on providers in areas such as the learners engagement code and the quality framework.

Governing bodies, as one would expect, feature heavily in the framework. Good governance and management are a condition of registration and pages 51-56 cover what this looks like and how it will be monitored by Medr. 

Under the headings of “Good Governance”, “Governing Body” and “Strategy” there are a series of key points which include a duty on providers to assess and monitor how their board culture encourages openness, transparent decision making, accountability, and challenge and how this desired culture has been embedded. The governing body and senior executive team must be receptive to challenge, encourage open and honest conversations and have a “shared understanding of, and commitment to, the provider’s mission and values”.

The composition of the governing body needs to be appropriate to deliver these activities, with the “appropriate balance of knowledge, skills, background, experience, diversity and independence” for it to discharge its governance roles and responsibilities objectively and effectively.

Governing bodies must also have a budget to draw on and access to independent experts if required, and provide oversight of all settlement agreements. 

As part of the initial stages of registration, providers will have to submit a self-evaluation of the adequacy and effectiveness of its governance and management arrangements which must “consider the provider as a whole” and encompass any group structures or subsidiaries. 

Self-evaluation should draw on: compliance with the appropriate governance code, the most recent effectiveness review of the governing body and the actions taken in response to the report, risk management tools and processes, management of reportable events and any other sources of data and assurance. It should also include an action plan which identifies any gaps or areas for improvement and shows how these will be addressed.

Full compliance with the governance and management (including financial management) condition, should be achieved by 1 August 2027.

The framework enshrines the importance of learner and staff welfare and engagement. Under the learner engagement code, providers must engage learners in their decision making and work with learner representative bodies where they exist. 

Governing boards may well already do this or be aware of arrangements at their institutions for consultation with students. For others, the learner engagement code document provides more details of what is required.

On welfare, providers must complete a self-evaluation which considers the effectiveness of policies, procedures and support services for learner and staff emotional wellbeing and mental health, equality, and safety, including freedom from harassment, misconduct, violence (including sexual violence) and hate crime. 

If the areas above are not covered in an institution’s existing self-evaluation/self assessment processes they will need to be covered.

Providers must also publish a two-year welfare action plan, approved by the governing body and submitted to Medr, setting out their priority actions based on their welfare self-evaluation. 

On quality of provision, the condition of registration mentions “continuous improvement”. The quality framework document provides further guidance about what metrics will be measured and which data will be relevant. 

Boards may be reassured by Medr’s acknowledgement that different parts of the sector will prioritise different types of learner outcomes and that it may be appropriate to contextualise data, including recognising demographics and personal characteristics, mode and language of study, implications of small cohorts, and the diversity of the sector. 

It says it “considers data to be a trigger for a conversation with providers in the first instance”, to facilitate an understanding of context. By 2027, however, the regulator expects to have reviewed data collection arrangements and consulted on performance measures and the use of benchmarking and thresholds. Whether this will lead to the kind of minimum numerical thresholds which have been set by the Office for Students and apply to institutions in England remains to be see.