By now, you’ve familiarised yourself with the steps you need to take to comply with the Standards for Registered Training Organisations (RTOs) 2015 (Standards). If you are still unsure, don’t panic as we have summarised the registration basics as well as how your business can comply with the eight Standards.
Although, unfortunately, it doesn’t end there! In this article, we provide an overview of the other necessary legal requirements you will need to comply with, including:
- Fit and Proper Person;
- Financial Viability Risk Assessment; and
- Data Provision.
Fit and Proper Person Requirements (FPPR)
Schedule 3 in the Standards contains the FPPR. The VET Regulator is responsible for assessing whether an individual meets the criteria or not. The Regulator considers the following:
- Does the individual have any recorded convictions?
- Were they an RTO executive at the time the RTO breached a condition of their registration or had their registration cancelled or suspended?
- Has the person has ever been bankrupt?
- Has the person been disqualified from managing corporations?
- Have they provided misleading or false information to the register?
- Have they been determined not to be a fit and proper person under another national or state law?
- Is the public likely to have confidence in their ability to issue nationally recognised qualifications?
- Has the person been an RTO executive when it had breached a government training contract? and
- Any other relevant matter.
Provided you as the RTO founder, and any other of your executives and managers satisfy these criteria, you will be compliant.
Financial Viability Risk Assessment Requirements 2011 (FVRAR)
In short, RTO providers need to have their financials assessed by an auditor appointed by the VET regulator before applying for registration. You also need to allow an auditor to evaluate your finances at any time during your registration period unless the Regulator waives this requirement where they think there is a low risk.
You must submit the financial data using a prescribed form and include the information specified in the FVRAR, including liquidity and revenue. They will use different financial documents to assess these criteria including:
- Cash flow and bank accounts;
- Tax records;
- Profit and loss statements; and
- Balance sheets.
Data Provision Requirements 2012 (DPR)
The Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS) is the national data standard for collecting data from VET providers, like RTOs. The DPR sets out the information that RTOs need to provide when they first register, on renewal and during audits.
There are over 20 different things that you would need to provide to the VET Regulator, such as:
- A copy of your certificate of incorporation;
- Financial viability risk assessment information;
- ACN; and
- Information on all qualifications you wish to provide to students.
As an RTO provider, all of the information you provide must comply with the AVETMISS requirements, and you must submit annual reports and collect data referring to specific quality indicators.
LegalVision’s specialist RTO lawyers understand the importance of compliance. We can assist your RTO to meet each of the requirements in the FPPR, the FVRAR and the DPR.
Questions? Please get in touch on 1300 544 755.