On 18 May 2018 the OfS published updated guidance for higher education providers that are exempt charities. This guidance sets out governors’ duties, the OfS’s role and the reporting requirements places on these exempt charities.
As has been widely reported and commented on, in June 2018 the CUC published its Remuneration Code on senior staff pay and on severance payments.
- The Higher Education Senior Staff Remuneration Code
- Guidance on Decisions Taken about Severance Payments in HEIs
Following this, on 19 June 2018 there was an Accounts Direction from OfS, which confirms under “Senior Staff Pay” (paras 14 – 16) that providers must have regard to the CUC Remuneration Code and under “Severance Payments” (paras 17 – 18) that providers must have regard to CUC Guidance on Severance payments.
While this guidance is in a slightly watered down format from the initial drafts, covered in a previous briefing here, Universities should take note of the spotlight which the OfS as regulator is shining on these issues. It is vital that University Councils and Governing Bodies are just aware of their new obligations as the senior staff and decisions makers; it is the Governors as trustees who are expected to hold the University executives to account.
If you require further information please contact Kathleen Heycock, or your usual contact at the firm on +44 (0)20 3375 7000.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, July 2018