More than 60,000 students are estimated to be on courses which would fail to meet the UK regulator's minimum standards. Getty Images
More than 60,000 students are estimated to be on courses which would fail to meet the UK regulator's minimum standards. Getty Images
More than 60,000 students are estimated to be on courses which would fail to meet the UK regulator's minimum standards. Getty Images
More than 60,000 students are estimated to be on courses which would fail to meet the UK regulator's minimum standards. Getty Images

Students offered rating system for failing English universities


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Universities in England which fail to meet new minimum standards face penalties under proposals from the UK's higher education regulator to rank course quality.

In a consultation document published on Thursday, the Office for Students said more than 60,000 full-time and 150,000 part-time undergraduates were enrolled on courses which likely fall below its minimum standards. It said a value-for-money rating system would help local and international students judge if the institution is worth the fees charged.

Given UK tuition fees for domestic students have risen to £9,250 a year and annual fees for international students can touch £38,000, offering value for money has become steadily important.

The document lays out the numerical thresholds which universities must meet to avoid penalties.

As shown in the table, institutions where fewer than 80 per cent of first-year students studying for their first degree proceed to their second year will be punished. They will also be penalised if fewer than 75 per cent of students have completed their first degree over the past four years.

The sanctions available to the OfS will primarily be financial, either through the imposition of fines or restrictions on student loan availability.

The regulator's chief executive, Nicola Dandridge, called the plan "a landmark moment" in the battle against low educational standards.

“Many universities and colleges in England run high-quality courses that deliver positive outcomes for students. The thresholds that we have proposed will not affect them. They are instead designed to target those poor-quality courses and outcomes which are letting students down and don’t reflect students’ ambition and effort,” she said.

These underperformers are often found outside the traditional university sector in the private or alternative provision sectors.

It was revealed last week that the UK had suffered a drop in international students and the OfS will hope its beefed-up regulatory framework will incentivise a revival in their numbers.

“Our university system is acclaimed as world-class but there are too many pockets of poor quality," said Michelle Donelan, UK Universities Minister.

“Through this tough regulatory action, we are protecting students from being let down by these institutions, while also ensuring those delivering outstanding teaching are properly recognised.”

Further to numerical thresholds of minimum performance, the OfS intends to revive the teaching excellence framework awards for universities which exceed standards.

While the proposals will theoretically improve standards of existing courses, Universities UK encouraged the regulator to think more laterally and look at "how courses contribute to public services such as the NHS, to business creation and skills needs in local areas, and their contribution to cultural activity and the environment".

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
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Updated: January 20, 2022, 2:10 PM