Schedule 1 – Fit And Proper Person Requirements

Schedule 1: Fit And Proper Person Requirements

1  Application of Fit and Proper Person Requirements

1. The VET Regulator must have regard to all matters it considers relevant that are specified in this Schedule when determining whether a person specified in subsection (2) is a fit and proper person for the purposes of registration, renewing registration, or maintaining registration as a registered training organisation.
2. A person will not be a fit and proper person, if the VET Regulator is satisfied that, having regard to all matters it considers relevant in this Schedule, one or more of the following persons are not a fit and proper person:
   1. governing persons of the registered training organisation; or
   2. any person which exercises a degree of control or influence over the management or direction of the registered training organisation.

Note: The definition of ‘person’ includes a body politic or corporate as well as an individual: see section 2C of the Acts Interpretation Act 1901.

Note 2: Subsection (2) does not limit the types of persons which the VET Regulator may have regard to when undertaking a fit and proper person assessment.

2  Compliance with law

1. Regardless of whether a conviction has been recorded, the VET Regulator may have regard to whether the person has been found guilty of an offence against, or ordered to pay a pecuniary penalty under, a law of the Commonwealth or a State or Territory.

Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them. Nothing in subsection (1) affects the operation of Part VIIC of the Crimes Act 1914.

2. The VET Regulator may have regard to the seriousness of, and the time elapsed since the offence, conviction, or matter to which the pecuniary penalty relates occurred.
3. The VET Regulator may have regard to whether the person is currently involved in proceedings before a court or tribunal.
4. The VET Regulator may have regard to whether the person has been found guilty of a foreign offence (within the meaning of section 85ZL of the Crimes Act 1914.

3  Management history

1. The VET Regulator may have regard to whether one or more of the following has been cancelled, revoked, suspended or rejected:
   1. the person’s registration as a registered training organisation;
   2. the person’s application for registration or renewal of registration as a registered training organisation;
   3. the person’s approval as an approved course provider (within the meaning of the VET Student Loans Act 2016) or VET provider (within the meaning of the Higher Education Support Act 2003);
   4. subsidy funding arrangements with a State or Territory for the provision of education by the person.
2. The VET Regulator may have regard to whether the person has:
   1. breached a condition of registration; or
   2. had a condition imposed by way of sanction on a registration, approval or arrangement mentioned in subsection (1) and has breached such a condition.
3. The VET Regulator may have regard to whether the person has ever been a manager or director of a registered higher education provider (within the meaning of the Tertiary Education Quality and Standards Agency Act 2011) or registered provider (within the meaning of the Education Services for Overseas Students Act 2000) at a time that the registered higher education provider or registered provider was determined to have breached a condition of its registration under the:
   1. Education Services for Overseas Students Act 2000; or
   2. Tertiary Education Quality and Standards Agency Act 2011.
4. The VET Regulator may have regard to whether the person has ever been involved:
   1. in the business of delivering courses or other services on behalf of a person that was the subject of regulatory action described in subsections (1), (2) or (3); or
   2. with an entity at the time that entity was found to have breached a government training contract.
5. The VET Regulator may have regard to whether the person has been disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001.

4  Financial record

 The VET Regulator may have regard to whether the person:

(a) has been insolvent or bankrupt; or

(b) has taken steps to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

(c) has compounded with one or more creditors; or

(d) has assigned remuneration for the benefit of one or more creditors; or

(e) has been under external administration (within the meaning of subsection 600H(2) of the Corporations Act 2001); or

(f) has outstanding debts to the Commonwealth.

5  Provision of information

The VET Regulator may have regard to whether the person has provided false or misleading information to any of the following in circumstances where it is reasonable to assume that the person knew that the information was false or misleading:

(a) a VET Regulator;

(b) the Tertiary Education Quality and Standards Agency;

(c) the TPS Director (within the meaning of the Education Services for Overseas Students Act 2000), including in the TPS Director’s capacity as the VSL Tuition Protection Director under the VET Student Loans Act 2016 and the Higher Education Tuition Protection Director under the Higher Education Support Act 2003;

(d) the Minister, the Department or the Secretary;

(e) an authority of a State or Territory that deals with subsidy funding arrangements for education.

6  Previous conduct and involvements

1. The VET Regulator may have regard to whether the person has previously been found not to be a fit and proper person for the purposes of one or more of the following:
   1. the Act;
   2. the Australian Education Act 2013;
   3. the Education Services for Overseas Students Act 2000;
   4. the Higher Education Support Act 2003;
   5. the Tertiary Education Quality and Standards Agency Act 2011;
   6. the VET Student Loans Act 2016;
   7. subsidy funding arrangements with a State or Territory for the provision of education;
   8. any other law of the Commonwealth or of a State or Territory.
2. The VET Regulator may have regard to whether the person has engaged in conduct that reasonably suggests a deliberate pattern of unethical behaviour.
3. The VET Regulator may have regard to any other matter it considers relevant.

7  Additional considerations

 The VET Regulator may have regard to whether the public is unlikely to have confidence in the person's suitability to be involved in an organisation that provides, assesses or issues nationally recognised qualifications.

Related Standards

Standard:

• Standard 4.1 - leadership and accountability

Additional Resources

Please note the draft Schedule contain no changes to the current FPPRs.

Website:

• Fit and Proper Person Requirements
• Fit and Proper Person Policy
• Fit and Proper Person Declaration (Form)

Webinar

• The Fit and Proper Person Requirements webinar covers the steps involved in TAC assessing Fit and Proper Person Declarations and who needs to submit a declaration.  Although this webinar is aligned to the Standards for RTOs 2015, the information contained within the webinar is relevant to the Revised Standards for RTOs.