The Office for Students (OfS) is investigating a partnership between Buckinghamshire New University (BNU) and a London-based higher education provider. 

The English regulator said it had opened an investigation in May into BNU degrees being delivered by the London School of Science and Technology (LSST) through a franchise agreement.

It will look at whether the institutions were compliant with conditions related to quality, management and governance. It will also examine whether LSST complied with regulatory conditions concerning provision of information.

The two institutions cut ties in June, following BNU’s decision to dramatically scale back its franchise partnerships. The university previously had the most students on franchised courses in the country, with 12,320 in 2021-22.

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It follows concerns about the quality assurance of franchise provision after a series of investigations unearthed cases of non-genuine students enrolling in these courses to access student loan funding. 

Leeds Trinity University, another institution with significant numbers of franchise students, was recently fined £115,000 after the OfS identified a lack of oversight in its partnership provision. 

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Damien Page, vice-chancellor of BNU, previously told ����Vlog that the institution had historically had “far too many” franchise students and would be cutting these courses by 82 per cent – despite this income stream being worth £20 million to the university. 

The OfS is considering introducing further conditions for franchise partnerships, including requiring all providers with over 300 students to register and making universities publish how much they earn from these arrangements.

The regulator said that the “decision to open an investigation does not mean that any form of non-compliance or wrong-doing has taken place”. 

LSST is currently in the process of applying for degree-awarding powers with the OfS and, according to the institution, the application is being progressed despite the regulator suspending most of this work at the end of 2024.

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“We are one of few alternative higher education providers in the country registered with the OfS, demonstrating our commitment to transparency and regulatory compliance,” LSST said in a statement. 

The institution confirmed that the partnership with BNU will end in 2026, but that LSST will continue to teach its students currently registered on the university’s courses.

“We understand and welcome regulatory scrutiny, especially in light of recent events in the higher education sector. We remain confident and fully engaged with the OfS throughout this process,” LSST said.

helen.packer@timeshighereducation.com