Student Fee Protection Rules 2022

13. Obligations of Providers

  1. Providers are required to provide to a Supplier the information they hold, which is relevant to information that a Supplier must provide to NZQA under Appendix A, within five working days of the Supplier’s request to the Provider.
  2. A Provider must supply to NZQA and to its Supplier, before the end of five months following each financial year end of the Provider, and at the Provider’s expense:
    1. an audit opinion from an independent chartered accountant confirming that the provider is Compliant; and
    2. a further audit opinion from the independent chartered accountant confirming the compliance of the provider’s Supplier with these Rules and relevant Mechanisms (however, if the Supplier is Public Trust, this paragraph (b) does not apply).
  3. NZQA may contact any independent chartered accountant (or firm) who provided an audit opinion for the purposes rule 13.2, to clarify any of the content of the opinion or any related matter.
  4. Providers must request and retain from a Student, who has paid Student Fees to the Provider via an Agent, a copy of the invoice the Student receives from the Agent.
  5. Where there is -
    1. a voluntary closure or Course cessation by a Provider; or
    2. NZQA gives notice of a Course Closure Event under rule 7.1 -
      the Provider must provide the Supplier and NZQA with the information set out in Appendix A within five working days, and must ensure Students are paid their refund entitlements.
  6. Without limiting rule 11.3, a Provider must not change a Mechanism it has in place unless it seeks NZQA approval by giving at least 20 working days’ notice and unless NZQA approves the change.
  7. Providers must, as a minimum and as part of their Student information obligations under section 354 of the Act, inform Students about:
    1. the applicable Mechanism(s); and
    2. if and when the Mechanism is triggered:
      1. the process for the Student’s entitlement to any payment for the relevant Refund Period or any Pro Rata Refund;
      2. who the Student should contact;
      3. a list of any documents Students will require; and
      4. instructions to attend any meetings arranged for Students.
  8. In respect of Providers operating either Mechanism 1 (standard trust or static trust) or Mechanism 2 (bank bond) in Appendix B:
    1. where the Provider becomes aware that it has drawn down fees of a higher amount than the amount of the tuition actually delivered, the Provider must reimburse to the Supplier, by the close of the next business day, sufficient funds for the trust to cover the Tuition Fees represented by the undelivered tuition;
    2. where a Course Closure Event, or voluntary closure or Course cessation by a Provider occurs, and the Provider has been paid by the Supplier an amount more than the Provider is entitled to (based on tuition actually delivered), the Supplier may withhold further payments due to the Provider to offset that amount of undelivered tuition; and
    3. where a Student is enrolled in a Conditions Dependent Course, the Provider may only draw down Tuition Fees in relation to the Student upon confirmation to the Supplier that the tuition for which payment is claimed has been delivered.
  9. Providers must:
    1. ensure that the correct amount of Student Fees is held by an Approved Independent Trustee when the Provider or any person acting on behalf of the Provider receives a payment of Student Fees, along with the amount of any deductions made by an Agent prior to the Provider receiving the Fees (whether that Agent is based overseas or in New Zealand);
    2. when aware that the Student has paid Student Fees to an Agent or any person acting on behalf of the Agent but unaware of the actual amount paid, deposit funds that cover the provider’s normal advertised price of the Course (including any expected commission fees if they are not included in that advertised price), accommodation expenses, travel and health insurance, living expenses, and other financial commitments associated with the Course; and
    3. advise NZQA where a situation of the kind described in paragraph (b) of this rule 13.9 occurs.
  10. Before a Provider Enrols a Student via an Agent, there must be a written contract in place between the Provider and the Agent that properly covers the requirements of these Rules and the Act.
  11. Providers must give all reasonable assistance to their Supplier(s) for the purposes of their Supplier(s) meeting their obligations in the Act, these Rules, and any relevant trust deed.


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