Notice of Intention to impose a Monetary Penalty: QFI
Ofqual intends to impose a Monetary Penalty on Qualifications for Industry (QFI) in the sum of £50,000.
Applies to England
Documents
Details
On 26 February 2021, Ofqual recognised QFI as an awarding organisation to award a range of qualifications, including End Point Assessment (EPA) qualifications. On the same date, Ofqual imposed Special Conditions with the intention of restricting the number of registered Learners which QFI could have at any one time and the number of assessments it could deliver in any 12-month period. The Special Conditions made provision for QFI to apply to vary the restrictions at any time.
QFI was required to take all reasonable steps to ensure that no more than 200 Learners in total were at any one time registered to take its qualifications and no more than 200 Learners in total took assessments for its qualifications in any 12-month period.
Ofqual imposed the Special Conditions because it considered there was an unacceptable risk that QFI might not have the resources or capacity to develop, deliver, and award qualifications which complied with the General Conditions of Recognition beyond a certain level of demand.
On 9 November 2023, following an Ofqual investigation, QFI was issued with a final investigation report (“the investigation report”) setting out a number of alleged non-compliances including failures to comply with the Special Conditions.
On 24 June and 14 August 2024, Ofqual’s Enforcement Panel (“the Panel”) considered the case against QFI. QFI denied the breaches throughout the enforcement proceedings. QFI argued that there were a variety of reasons why the Panel should not conclude that QFI had breached the Special Conditions.
Following consideration of the evidence and QFI’s representations, the Panel found the allegations proved and rejected QFI’s arguments. The Panel found that QFI:
a. failed to take the restriction on Learner numbers into account in its business operations and therefore failed to take all reasonable steps to comply with the restriction, and consequently exceeded the restriction by allowing 848 Learners to be registered on 30 April 2023, contrary to Special Condition QFI 2.1(a).
b. failed to take the restriction on assessment numbers into account in its business operations and therefore failed to take all reasonable steps to comply with the restriction, and consequently exceeded the restriction by assessing 237 Learners in the period January 2023 to 13 July 2023 (with QFI continuing to assess Learners thereafter), contrary to Special Condition QFI 2.1(b).
The Panel found that the breaches were avoidable and occurred either because QFI chose to disregard the Special Conditions or was grossly negligent in its consideration of those conditions. In either event, the breaches reflected a failure in governance at QFI.
The Panel considered the breaches to be serious and to require significant regulatory action. Withdrawal of recognition was not available because QFI has surrendered its recognition. Having had regard to Ofqual’s Taking Regulatory Action policy (May 2012), the Panel considered a monetary penalty to be appropriate.
QFI and interested parties now have the opportunity to make representations in respect of Ofqual’s proposal.