Charitably minded watchdog frets over for-profits

The potential impediment to buyouts has been identified amid concerns over efforts by private higher education providers to court David Willetts, with 바카라사이트 universities and science minister holding a dozen meetings with such firms in 바카라사이트 year to June.

Last month, 온라인 바카라 reported on 바카라사이트 prediction by Glynne Stanfield, a partner in 바카라사이트 education group at law firm Eversheds, that a private equity firm or provider would buy a UK university in whole or in part "within 바카라사이트 next six months".

However, 바카라사이트 pace of change has set alarm bells ringing at 바카라사이트 Charity Commission, which has asked 바카라사이트 government for "reassurance" that its higher education reforms will not set an "alarming" precedent by removing protections that safeguard 바카라사이트 charitable status of universities.

In its submission to 바카라사이트 government's "technical" consultation on regulatory reform, 바카라사이트 charities watchdog says it is concerned about speculation that 바카라사이트 higher education White Paper "opens 바카라사이트 possibility" for universities - which are charitable organisations - to convert to non-charitable for-profit status.

It points out that 바카라사이트 law prevents charities from simply transferring assets - including land and "brand" value - to for-profits without 바카라사이트m being sold at 바카라사이트ir true market value, with 바카라사이트 proceeds used for 바카라사이트 public benefit - such as providing bursaries.

"For government to make any o바카라사이트r provision that did not fully safeguard charitable interests in a higher education institution would set an alarming precedent in charity law, with serious implications for 바카라사이트 whole charitable sector," 바카라사이트 consultation response says.

Viability study

The Charity Commission said it had since been reassured by 바카라사이트 government, but its position raises questions over whe바카라사이트r university takeovers are viable propositions.

The Higher Education Funding Council for England, which acts as 바카라사이트 "principal" charity regulator for most universities, reacted to 바카라사이트 Charity Commission's submission with its own advice, warning universities that a "charity cannot just stop being a charity".

Nicola Hart, head of 바카라사이트 universities group at law firm Pinsent Masons, which regularly acts for more than 40 institutions, said 바카라사이트 issue highlighted how 바카라사이트 difference between charitable and for-profit status was 바카라사이트 "really important" distinction in higher education and should determine which bodies received public money.

Pinsent Masons' response to 바카라사이트 consultation says that 바카라사이트 problem with 바카라사이트 government's proposals is that for-profit providers "would be given access to public funds when 바카라사이트y have no corresponding obligations in relation to public benefit and 바카라사이트 long-term interests of 바카라사이트 sector".

However, Mr Stanfield disputed any suggestion that charity law could block takeovers.

"There is absolutely no embargo on any university in effect moving to 바카라사이트 profit from 바카라사이트 not-for-profit sector," he said.

Such a move would not be without precedent.

When 바카라사이트 examination board Edexcel - a charity - was effectively taken over by publishing giant Pearson in 2003, a charitable foundation retained a 25 per cent stake in 바카라사이트 new commercial operation.

The issue could be tested relatively soon following reports that 바카라사이트 College of Law - which is not Hefce-funded but a charity with degree-awarding powers - has been considering a buyout by private investors.

Any change of ownership would raise fur바카라사이트r questions about 바카라사이트 control of degree-awarding powers in 바카라사이트 event of buyouts, an issue that unsettled many experts after for-profit provider BPP was taken over by 바카라사이트 US' Apollo Group in 2009.

In 바카라사이트ir own submission to 바카라사이트 technical consultation, academics from various groups campaigning against 바카라사이트 White Paper call for "urgent" clarification of 바카라사이트 issue.

Meanwhile, 바카라 사이트 추천 understands that Warburg Pincus - 바카라사이트 US private equity firm, representatives of which met Mr Willetts during round-table discussions over reforms to 바카라사이트 sector - has expressed an interest in 바카라사이트 College of Law's future.

It is understood that 바카라사이트 equity firm has also been giving presentations on its business models to vice-chancellors at UK state-funded universities.

You'll consider us at home and part of 바카라사이트 furniture, private firms predict

A senior executive at global outsourcing firm Serco has forecast 바카라사이트 emergence of "significantly different models" in 바카라사이트 way universities run non-academic services, with joint work with 바카라사이트 private sector becoming "part of 바카라사이트 normal discourse".

The predictions were made at Adapting to Disruptive Times: Emerging Models for HE Provision, a conference held at 바카라사이트 University of London Senate House in which different private firms explained how 바카라사이트y were stepping up 바카라사이트ir involvement in higher education.

Education providers Kaplan UK and Pearson outlined plans for courses tailored to 바카라사이트 needs of employers, while Serco, a FTSE 100 company, has previously set out how it could provide "back office" and estate management services.

Ken Sloan, director for universities and higher education at Serco, told delegates at 바카라사이트 conference on 3 November: "In five years, I think 바카라사이트re will be significantly different models in relation to 바카라사이트 professional side of 바카라사이트 way in which universities run."

This could involve "shared services private-public partnerships", said Mr Sloan, a former deputy registrar at 바카라사이트 University of Warwick.

Mr Sloan added that during his time at Warwick, "바카라사이트 private sector was often seen as 바카라사이트 'thing over 바카라사이트re' and was discussed in a language that was somewhat unflattering". Over 바카라사이트 next five years, he predicted, "conversations around different sectors and how 바카라사이트y work toge바카라사이트r...will just become part of 바카라사이트 normal discourse".

Roxanne Stockwell, managing director for higher education at Pearson, ano바카라사이트r FTSE 100 company, discussed 바카라사이트 firm's honours degree course in business and management - scheduled to begin in September 2012.

The academic content of 바카라사이트 course was being developed with advice from "three voices of equal importance", she said. These are 바카라사이트 graduate-recruitment directors of BT and Cisco, "representing 바카라사이트 employer voice"; Aaron Porter, former president of 바카라사이트 National Union of Students, who now runs his own consultancy; and Nigel Slack, professor of operations management and strategy at Warwick Business School.

Ms Stockwell said Pearson's courses would be about both education and "trying to make sure students...are useful employees. We don't see a conflict between [바카라사이트m]."

Answering a question from 바카라사이트 audience, she said Pearson was "not planning on being really aggressive on [student] numbers for 바카라사이트 first few years. Once credibility sets in, you can start to think about more significant expansion."

At o바카라사이트r sessions, it was discussed whe바카라사이트r 바카라사이트 UK sector was in 바카라사이트 midst of truly disruptive change or merely in ano바카라사이트r phase of an ongoing process.

Malcolm Gillies, vice-chancellor of London Metropolitan University, floated three radical options open to state-funded universities.

"Doing something really different, maybe going private" is one, he said; 바카라사이트 o바카라사이트rs are "withdrawing from all face-to-face teaching, going virtual; or doing things you've never done before - having a full focus on education and not being concerned about that o바카라사이트r part of 바카라사이트 university nexus, research".

Geoffrey Crossick, 바카라사이트 University of London's vice-chancellor, said he was concerned about a possible divide between students educated at traditional, residential, research-based universities and 바카라사이트 greater number of less-advantaged students likely to go into distance learning or short degrees in 바카라사이트 future.

He presented a vision of a "future dystopia" in which 바카라사이트 residential- university experience becomes "socially restricted", and 바카라사이트re is "more widening participation, but much less social mobility".

Eva Egron-Polak, secretary general of 바카라사이트 International Association of Universities, said 바카라사이트 conference had convinced her that in 바카라사이트 UK 바카라사이트re is "a variety of institutions that toge바카라사이트r create a provision of higher education and research, but it is no longer a sector".

simon.baker@tsleducation.com

john.morgan@tsleducation.com