Franchised provision at Leeds Trinity University will be investigated by the higher education watchdog.
The Office for Students (OfS) said it has identified “potential concerns that require further scrutiny”.
Courses delivered by the university’s subcontractual partners – more commonly known as franchised partners – will be looked at to check they are “high quality”, the higher education regulator has said.
The spending watchdog called on the OfS to reiterate to institutions “as a matter of urgency” that they bear direct responsibility for the governance and management practices of franchised providers.
The OfS investigation into Leeds Trinity University, which opened on February 16, will consider whether the university has “effective management and governance” in place for franchised partners.
In a statement on Thursday, the OfS said: “The investigation will consider whether Leeds Trinity University has complied with general ongoing conditions of registration, and any matters relevant to the provider’s authorisation for degree-awarding powers in relation to its partnerships.
“The opening of the investigation means that the OfS has identified potential concerns that require further scrutiny.
“The decision to open an investigation does not mean that any form of non-compliance or wrong-doing has taken place.”
It comes after the NAO report last month found that 53% of the £4.1 million fraud detected by the SLC by value was at franchised higher education providers in England in 2022/23.
Lead higher education providers in England must be registered with the OfS for their franchised providers’ students to be eligible for student funding. Franchised providers do not need to register with the OfS.
A Leeds Trinity University spokesperson said: “As a responsible higher education provider we understand and take seriously our obligation to comply with all relevant rules and guidelines to meet the sector’s regulatory requirements.
“Leeds Trinity University will work with the Office for Students to ensure transparency and assurance in relation to the institution’s franchise partnership arrangements.
“Widening participation is at the heart of Leeds Trinity’s ethos and has been for many years. Franchise partnerships are one of a number of ways in which the university enables social mobility and raising aspirations in groups traditionally under-represented in higher education.”
