Document ID: chunk:federal_register_of_legislation:F2024C00276:front:0:p21
Version: federal_register_of_legislation:F2024C00276
Segment Type: other
Provision Reference: 
Character Range: 55217–58104

and
       b) identifies potential causes of complaints and appeals and takes appropriate corrective action to eliminate or mitigate the likelihood of reoccurrence.
6.6. Where the RTO is an employer or a volunteer organisation whose learners solely consist of its employees or members, does not charge fees for the training and/or assessment, and does not have in place a specific complaints and appeals policy in accordance with Clauses 6.1 & 6.2, the organisation has a complaints and appeals policy which is sufficiently broad to cover the services provided by the RTO.

PART 4 – RTO governance and administration
         Standard 7. The RTO has effective governance and administration arrangements in place.
Context:

Business viability is critical to the ongoing sustainability of an RTO and the investment it makes in its services. If RTOs are not viable, then this negatively impacts on the quality of its training and assessment outcomes and on learners.

Operational and financial business standards therefore provide important protective measures for the learner and RTOs, as well as acting as a disincentive for underprepared organisations to enter the market.

The factors determining the viability of an RTO are dependent upon the business objectives and operating characteristics of the RTO. For example, the factors determining the business viability of an enterprise RTO embedded within a major Australian business may be different to those impacting upon a private provider or a publically‑owned TAFE Institute.

To be compliant with Standard 7 the RTO must meet the following:
The RTO ensures that its executive officers, high managerial agents and any persons who exercise a degree of control or influence over the management or direction of the RTO:
       a) are vested with sufficient authority to ensure the RTO complies with the RTO Standards at all times; and
       b) are assessed by the RTO as being fit and proper persons, having regard to the Fit and Proper Person Requirements, prior to being appointed to the relevant positions; and
       c) remain, in the opinion of the RTO, throughout their time occupying relevant positions, fit and proper persons, having regard to the Fit and Proper Person Requirements.
7.2. The RTO satisfies the Financial Viability Risk Assessment Requirements.
7.3. Where the RTO requires, either directly or through a third party, a prospective or current learner to prepay fees in excess of a total of $1500 (being the threshold prepaid fee amount), the RTO must meet the requirements set out in the Requirements for Fee Protection in Schedule 6.
7.4. The RTO holds public liability insurance that covers the scope of its operations throughout its registration period.
7.5. The RTO provides accurate and current information as required by the Data Provision Requirements as updated from time to time.

         Standard 8.