Australia's vocational education and training (VET) sector plays a crucial role in developing a skilled workforce and driving economic growth. To ensure the integrity and quality of this sector, the Australian Skills Quality Authority (ASQA) mandates that Registered Training Organisations (RTOs) adhere to strict standards, including the "Fit and Proper Person" requirement.
This regulation necessitates that individuals who exercise significant control or influence over the management and strategic direction of an RTO must demonstrate they are suitable for their roles. This suitability encompasses financial probity, relevant expertise, and a commitment to ethical practices within the VET sector.
Recent Changes and Their Significance
ASQA has recently amplified the "Fit and Proper Person" requirements, extending their scope beyond CEOs and high-level managers. Now, anyone who wields a degree of control or influence over an RTO's management or strategic direction must meet these standards. This change reinforces ASQA's determination to uphold high standards of governance and minimise risks within the VET sector.
Practical Steps for RTO Compliance
RTOs must diligently implement measures to ensure they comply with the "Fit and Proper Person" requirements. Here's a breakdown of essential actions:
Scrutinise Your Organisational Structure: Meticulously review your organisational chart to ensure it pinpoints all individuals who fall under the "Fit and Proper Person" designation. Each of these individuals should have a well-defined position description that outlines their roles and responsibilities.
Robust Policies and Procedures: Establish clear policies and procedures addressing the identification and handling of substandard, unethical, dishonest, or non-compliant practices. These documents should outline specific actions to be taken to rectify such situations and deter future occurrences.
Third-Party Relationships and Internal Controls: Thoroughly document agreements with third parties, paying close attention to who holds final decision-making authority. Define what constitutes "control" and "influence" within your organisation. Ensure these documents are readily accessible, reviewed regularly with updates implemented as needed.
"Fit and Proper" Recruitment: Integrate a comprehensive review of the "Fit and Proper Person" criteria into your recruitment processes for all relevant positions. Thoroughly vet potential candidates to ensure they align with and uphold the sector's high standards.
Protecting the Integrity of the VET Sector
By adhering to the "Fit and Proper Person" requirements, RTOs significantly contribute to a robust and reputable VET sector. These standards protect learners, promote ethical business practices, and foster a culture of excellence within vocational training.
RTOs that prioritise governance and risk management build trust among learners, industry partners, and the broader community. This commitment to integrity ultimately positions them for long-term success and plays a vital role in driving economic prosperity in Australia
