How to maintain PTE registration

Student Fee Protection

To maintain its registration a PTE must meet the requirements of NZQA's Student Fee Protection policy. Student fee protection covers all payments made to a PTE by, or on behalf of, a student. If paid to a PTE, these will include:

fees (including course-related costs)
accommodation
living expenses.

NZQA's student fee protection policy protects the interests of domestic and international students. The policy comes into effect if a PTE stops offering a course in which students have enrolled (i.e. 'course closure').

The requirements of the student fee protection policy for PTEs to maintain their ongoing registration are summarised below.

Quarterly student fee protection attestation

PTEs are required to attest quarterly to their student fee protection trustee with regard to their student fee protection arrangements. The trustee then must attest to NZQA about the PTE's attestation and other information they must reasonably have.

The templates and timetable for quarterly attestation are available on the NZQA website.

Audit of student fee protection arrangements

Trust Deed Audit Opinion - PTE	Trust Deed Audit Opinion - Trustee

PTEs are required to submit an annual audit of the operation of standard, static and bank bond trust operations as detailed in the trust deed. The approved NZQA forms for audit opinion/auditor engagement letters are opposite.

Student fee protection options

NZQA's student fee protection policy allows a number of options to be used. These are detailed in part two of the student fee protection policy on the website and include:

trust accounts (standard or static)
bank bonds
insurance (student-based insurance or bonds)
company or parent body guarantees
deferred payment
collaborative arrangements.

PTEs may use the option most suitable for their circumstances, provided NZQA gives prior approval. They may also use more than one option as long as the fees of all students are covered to the satisfaction of NZQA. If the PTE's student fee protection mechanism is one of the above, the PTE will need to use the relevant NZQA-approved trust deed, described below.

Standard Trust Deed

The standard NZQA trust account is one where individual student fees are drawn down in arrears.

The Standard Trust Deed for Chartered Accountant and Solicitor Trustees
Guidance Notes for PTEs and Trustees

Static Trust Deed

A static trust is where an amount equal to the maximum liability the PTE would have in the event of course closure is held in trust. The static trust does not rely on student fees being paid into the trust account and there are no periodic draw-downs. (This arrangement is Option 2 (b) of the Student Fee Protection Policy).

The Static Trust Deed
Guidelines for the Calculation of the Entitled Student Amount
Guidance Notes for PTEs and Trustees

Bank Bond Trust Deed

A bank bond is where the PTE arranges for a bank to cover the maximum liability the PTE would have in the event of a course closure. The bond arrangement must include a trust process for the distribution of funds to students (as per Option 4 of the Student Fee Protection Policy).

Bank Bond Trust Deed
Guidelines for the Calculation of the Entitled Student Amount
Guidance notes for PTEs and Trustees

Memorandum of Understanding

A Memorandum of Understanding is for PTEs who do not use a standard or static trust for their full student fee protection, but are required to protect student fees under section 236A(2) of the Education Act 1989.

Trustee's Memorandum of Understanding Form

Student Fee Protection Policy

The Student Fee Protection Policy aims to protect the interests of domestic and international students where a PTE ceases to offer a course in which a student is enrolled.

Student Fee Protection Policy

Student fee protection supplier contacts

Opposite is a list of contacts for suppliers of student fee protection arrangements. NZQA has approved these suppliers, but is not responsible for their products. Approval may be withdrawn if the product no longer meets the requirements of the student fee protection policy.

Exemption from student fee protection arrangements

PTEs must have a student fee protection mechanism in place that complies with NZQA policy. However, PTEs that meet the exemption criteria in the student fee protection policy can apply to be formally exempted.

A PTE is eligible for exemption from the student fee protection policy if:

the course is of five days, or a maximum of 50 hours duration or less
total student fees amount to $500 or less
there are no course fees, e.g. courses are completely funded by Government; or
the course is completely funded by third parties, e.g. a business or businesses.

If a PTE believes it has grounds for exemption, it should write with details to:

Deputy Chief Executive
Quality Assurance Division
New Zealand Qualifications Authority
PO Box 160
Wellington 5011

A written exemption ensures that all parties know that an exemption has been granted. For exemptions on a student basis, a PTE will also need to keep records of who is exempt.

A student fee protection mechanism must be in place until NZQA provides written approval of exemption. course hours cover all directed teaching, including distance teaching. Consecutive enrolments in modules are treated as an enrolment in a single course.

Student fee protection information to students

At a minimum, students should be advised:

the amount of fees protected
the type of fee protection arrangement in place and details of the trustee
people or organisations to contact if their course or PTE closes
to attend meetings arranged for students affected by a closure
to consult the NZQA website (www.nzqa.govt.nz).

Specific issues with regard to PTE obligations regarding international student fee protection are dealt with elsewhere.

Student withdrawals and refunds

All students are entitled (*) to a refund if they withdraw from a course, and if:

the course is of three months duration or more
the withdrawal occurs up to the end of the eighth day of the start of a course.

The private training establishment (PTE) must refund an amount equal to the fees paid less a deduction of the lesser of ten percent of the fees paid or $500.

International students are also entitled (**) to a refund if they withdraw from a course, and:

the course is less than three months in duration
the withdrawal occurs up to the end of the second day of the start of a course of up to four weeks and six days duration. The PTE must pay an amount equal to the fees paid less a deduction of 50 percent. However, if two days constitutes the full amount of tuition paid for by the student, the PTE may retain 100 percent of the payment
the withdrawal occurs up to the end of the fifth day of the start of a course of five weeks or more but less than three months duration. In this case, the PTE must pay an amount equal to the fees paid less a deduction of 25 percent.

These are minimum requirements . Students are entitled to a refund in line with a PTE's own refund policy. This may allow for amounts greater than the above. In special circumstances a PTE may also elect to make a refund that is greater than specified in its refund policy.

For more detailed information on NZQA rules for withdrawals and refunds.

(*) as s.236(A)(2) of the Education Act 1989

(**) NZQA policy per s. 236(d)(iv) of the Education Act 1989

Page updated: 06 October 2009