Ofqual has stood by its decision to fine an apprenticeship assessment organisation that challenged a £50,000 penalty – and lumped additional legal costs of almost £16,000 on top.
Qualifications for Industry (QFI) owner Richard McClelland had vowed not to pay the charge and shut down the firm after claiming the regulator forced him out of the apprenticeships market.
He disputed the fine when it was issued in October but Ofqual’s internal enforcement panel upheld the decision this week.
QFI, a specialist construction end-point assessment organisation, became dormant in March after surrendering Ofqual recognition following a six-month probe into its capacity and delivery.
Ofqual claimed QFI breached a special condition imposed in 2021 which ruled no more than 200 learners could be registered to take its qualifications at any one time, and a maximum of 200 learners could take assessments in any 12-month period.
QFI did not dispute volumes were breached but alleged the regulator misled staff into believing the special condition had been lifted.
The company also argued the 200 cap only applied to the qualifications and apprenticeships it first gained recognition for, not the many other courses it was recognised for following later expansion requests.
Ofqual reviewed further representations in December but ruled QFI’s “non-compliance” was “deliberate” – the company allegedly chose not to cap the number of registered learners “due to the impact compliance would have on its profitability”.
The enforcement panel said there was “no proper basis for QFI to presume a decision to approve the expansion request meant the special condition had been lifted or varied, in the absence of any notification from Ofqual”.
It added the panel “remains of the view that QFI either wilfully and knowingly breached the special condition, or was grossly negligent if it in fact assumed at any stage the special condition no longer applied”.
McClelland had accused Ofqual of using QFI as a “sacrificial lamb” after the notice to fine revealed the enforcement panel had considered reducing the £50,000 fine in light of QFI’s decision to surrender recognition. But the regulator decided this was not “appropriate” as its “fining power” would be “less of a deterrent if awarding organisations believed they could operate in a non-compliant manner and surrender recognition to avoid a monetary penalty”.
This week’s judgment revealed Ofqual has also charged QFI legal costs of £15,846, taking its total bill to £65,846.
McClelland told FE Week: “For reasons unknown to me, Ofqual forced QFI out of business, then after the fact attempted to justify doing so. QFI has refuted all allegations made by Ofqual.
“Now after Ofqual has concluded its internal process we will take advice on the independent legal options available to us.”
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