Industry Self-Regulation

Industry self-regulation occurs when the member institutions of an industry agree on a guiding set of principles and a common code of practice to govern their operations. In most cases, these institutions will form an industry association.

The student counsellor will benefit from a working knowledge of the relevant industry associations of international education institutions in the destination country.

The Role of Industry Associations

The student counsellor should be aware of the various affiliations which education institutions in the destination countries have with their industry associations, and understand what these affiliations mean in terms of self-regulation and quality assurance.

Some industry associations in the education industry are open to both public and private institutions; others only to private institutions. Membership in an industry association is an indication of quality assurance as it certifies that the institution adheres to its principles and codes of practice.

Various forms of industry association can exist at local, regional, national, and international levels, and for different sectors in the education system. For example a university may belong to a national university association as well as one or more international university associations. A private language school may be a member of a local industry body, a national language industry association, a national private education association, and an international language industry association.

In practice, industry associations can have both positive and negative effects, depending on their integrity and quality. At their best, industry associations can promote a high level of consistent quality in their member institutions, and be agents for ongoing improvement in the industry. It is possible, however, that an industry association may simply exist as a barrier to new entrants in the industry, thereby reducing competition and increasing prices.

Interaction with Government

Education industry associations interact with governments in destination countries in a variety of ways. In many countries, industry associations have a close relationship with government policy-makers and regulators; in others they may have less influence. Industry associations may perform the functions of advocate, mediator, or regulator when interacting with governments.
In most countries, industry associations act as the industry’s advocate with government. Industry associations lobby for policies favourable to their members and against unfavourable policies. They generally also negotiate regarding the interpretation of regulations and regulatory processes which affect their members.

Industry associations may also function as mediators in disputes involving industry members. Such disputes may be with other members, with customers, or with regulatory authorities.

In some cases, industry associations may undertake the role of official industry regulator on behalf of the government. This may be for all or part of the accreditation and registration processes. For example, accreditation by the industry association may be necessary for registration with the government regulatory authority.

Regulation of Education Institutions

The two main mechanisms of self-regulation in the education industry are (1) the industry code of practice and (2) quality standards.

Industry Code of Practice

An industry code of practice will set out the guiding principles and specific policies to which member institutes must adhere. Industry codes of practice can range from relatively simple declarations of general principles to detailed and comprehensive statements of values, aims, mission, policies, and standards. In many cases, they are aligned closely to government registration conditions.

As a general rule, the more comprehensive the industry code of practice, the more rigorous and consistent the industry standard of quality. A comprehensive code of practice should contain essential information for member institutes, clients, staff, and stakeholders regarding the industry’s ethical and management standards for delivery of education products and services.

Quality Standards

Industry quality standards provide a framework for consistency of member institutions. An industry association may issue its own quality standards or it may use recognised external standards (e.g., government standards or International Standards Organisation (ISO) standards).

Quality standards may require member institutes to have:

• Documented systems to ensure consistent quality of education and assessment
• Appropriate management systems and financial control
• A system for regular internal audits
• Appropriate agreements with partner organisations
• Appropriate procedures for recruitment and development of staff
• Teachers and assessors with appropriate qualifications and experience
• Systems for recognition of student qualifications and experience.

In order to comply with the quality standards, member institutes usually must have documented policies and procedures for management of:

• Accreditation and registration compliance
• Marketing operations and materials
• Recruitment and enrolment
• Provision of education and assessment
• Student support services and duty of care issues
• Business and financial operations.

In practice the quality standards used by industry associations often align with government-mandated standards and conditions of registration. In some cases the industry standards may be higher than the minimum government standards.

Agent Responsibilities

It is likely that industry codes of practice and quality standards will affect the student counsellor through mandatory conditions in agents’ contracts with education institutions. In most cases these contractual obligations duplicate those outlined  Government Laws and Regulations.

Extension Questions: For each relevant destination country

• What industry codes of practice apply to international students?
• What industry codes of practice apply to international education providers?
• How are these industry codes of practice implemented?
• How effective are they?
• How do they affect the student counsellor?