Last Updated: 7 May 2026 · By Ehtisham Saeed, RTO Marketing Specialist
Most RTO owners have not seen this yet. By the time they do, the compliance window will already be tighter than it was yesterday.
ASQA dropped a brand new Statement of Regulatory Expectations this morning. 7 May 2026.
Related: What Is RTO Marketing? 9 Components Explained for 2026 (Standards Update)
It covers fit and proper person requirements and material change notifications.
Here’s the deal. The statement is not new law. It is ASQA telling you exactly how they will interpret the existing rules under the 2025 Standards. And what will trigger a non-compliance finding from now on.
In this guide, I’ll walk you through the 9 things every RTO must do this week. By the end, you’ll know who counts as a governing person, what counts as a material change, how the 10 business day clock works, and where most RTOs are about to get caught out. See also: What the 2025 Standards Mean for Your RTO in Plain English.
Let’s get into it.
Why This ASQA Statement Matters More Than You Think
This is not new regulation.
The fit and proper person rules have been part of the National VET Regulator Act 2011 for years.
What changed today is ASQA’s regulatory expectation of HOW you comply.
The fit and proper person rules now extend beyond CEOs and high managerial agents. They apply to any person who exercises a degree of control or influence over the management or direction of your RTO.
Translation: silent partners, board directors, ownership trusts, and external compliance consultants who represent your RTO at audit. They all need to meet FPPRs now.
Bottom line. ASQA’s statement says providers who fail FPPRs and material change notifications will be found non-compliant with the 2025 Standards. Further regulatory action may follow.
That is not a warning. That is a published expectation. Auditors will use it.
“Providers that do not comply with FPPR and notification of material change will be found non-compliant with the 2025 Standards. Further regulatory action may be taken by ASQA.” Source: ASQA Statement of Regulatory Expectations, 7 May 2026
What Fit and Proper Person Actually Means in 2026
The statement leans on the Compliance Standards Instrument 2025.
A fit and proper person assessment looks at six categories of conduct.
- Compliance with the law (criminal history, civil penalties, foreign offences)
- Management history in regulated education (past suspensions, cancellations, breaches)
- Honesty in dealings with regulators (false statements, withheld information)
- Bankruptcy and insolvency status
- Public confidence in the person (reputation, conduct, associations)
- Outcomes of previous applications across ASQA, VRQA, TAC WA, VSL and HESA
Here’s why this matters. ASQA is not just looking at the CEO anymore. They are looking at everyone in the orbit of your RTO who has influence.
Who Counts as a Governing Person Under the 2025 Standards
Six categories now fall in scope.
- The CEO or principal executive officer
- Anyone with 15 percent or more ownership (direct or through trusts)
- Board directors with oversight responsibility
- High managerial agents (anyone whose conduct represents the organisation)
- Any consultant who represents your RTO at audit
- Anyone with influence over management or direction
That last one is the trap.
Think about it. Who attends your strategic meetings? Who signs off on compliance documents? Who edits your TAS templates? If they have influence, they are in scope.
How the 10 Business Day Material Change Notification Rule Works
Material change notifications are the second half of today’s ASQA statement.
This is where most RTOs are already breaking the rule without knowing.
Here’s the legal trigger. An NVR registered training organisation must notify the National VET Regulator of any event that would significantly affect the organisation’s ability to comply with its obligations under the Act. The notice must be given within 10 business days after the event occurs.
10 business days. Not calendar days. From the moment the event happens.
What Counts as a Material Change ASQA Wants You to Notify
Common triggers include the following events.
- Change of CEO, executive officer or high managerial agent
- Acting CEO appointment for an extended period (yes, even four weeks of CEO leave)
- Sale of the RTO or change in ownership above 15 percent
- Change of legal entity name or type
- Financial administration status change (insolvency, voluntary administration)
- Adding or removing a third party arrangement
- Material change to your scope delivery model
- Loss of key trainers or assessors that affects delivery capacity
- Any event that means a governing person may no longer meet FPPRs
ASQA’s 10 business day clock starts the moment a material change happens. Not when you get around to documenting it.
Why Most RTOs Will Fail This Compliance Test
Here’s what most RTO owners do not realise.
When we ran 200-plus Australian RTO websites through RTO Scanner, fewer than one in five had a published “Notify ASQA” internal procedure. Not the form. Not the policy. The trigger checklist that tells your operations manager what counts as a material change.
That gap is exactly what ASQA’s statement is built to find.
The new outcome focused approach to compliance under the 2025 Standards means it is not enough to say “we know we have to notify ASQA”. You have to demonstrate the system that catches material changes when they happen.
No system. No evidence. No compliance. See also: ASQA Prohibited Phrases on RTO Websites.
The 9 Step Compliance Action Plan Every RTO Must Run This Week
This is the exact sequence I would run with any RTO client today.
Here’s the priority order at a glance.
| Step | Action | Owner | Time |
|---|---|---|---|
| 1 | Build governing persons register | CEO | 2 hours |
| 2 | Audit FPP declarations on file | Compliance Manager | 4 hours |
| 3 | Document material change trigger checklist | Compliance Manager | 3 hours |
| 4 | Set up 10 day notification workflow | Operations Manager | 2 hours |
| 5 | Update continuous improvement plan | CEO | 1 hour |
| 6 | Brief governing persons on FPP obligations | CEO | 1 hour |
| 7 | Audit third party and consultant arrangements | Compliance Manager | 3 hours |
| 8 | Check website for outdated personnel info | Marketing | 30 minutes |
| 9 | Diary 2027 ADC submission | CEO | 5 minutes |
Step 1: Build Your Current Governing Persons Register
Open one document. List every person who currently meets the governing person definition.
Include the CEO, executive officers, owners holding 15 percent or more, board directors, high managerial agents, and any consultant who represents your RTO at audit. Date it today.
This is your baseline. Without it, you cannot prove anything to ASQA.
Step 2: Audit FPP Declarations on File
Pull the file for each person on your register. Confirm a signed Fit and Proper Person Declaration exists.
If anyone is missing one, they need to complete one immediately. The current ASQA form was updated 1 December 2025. Use that version, not an older one.
Step 3: Document Your Material Change Trigger Checklist
Write a one page document. Title it “Material Change Notification Triggers, RTO Code [Your Code]”.
List every event type that requires notification. Assign internal ownership for each trigger.
Operations manager handles staffing changes. CEO handles ownership changes. Compliance manager handles scope and third party arrangements. Make it specific.
Step 4: Set Up Your 10 Business Day Notification Workflow
The clock starts the moment the event occurs. You need a workflow that catches it.
Add the trigger to your weekly management meeting agenda. Build it into HR onboarding and offboarding. Add it to your continuous improvement register as a standing item.
If you use a student management system that tracks staff records, set the alert there. RTOGrow SMS handles trainer compliance tracking out of the box. For the full picture on student data and compliance, see How to Submit AVETMISS Data to NCVER Without Errors.
Step 5: Update Your Continuous Improvement Plan
The 2025 Standards are outcome focused.
ASQA’s accountability practice guide asks: how do you monitor your operations to identify whether there are, or likely to be, material changes that require notification to ASQA? See also: RTO Marketing Compliance: The Information and Transparency Practice Guide Made Practical (Pillar 5).
That question will appear in your next performance assessment. Your CI plan needs to answer it specifically.
Add an entry dated today: “Reviewed ASQA Statement of Regulatory Expectations on FPPRs and material changes (7 May 2026). Updated material change trigger checklist and governing persons register accordingly.”
Step 6: Brief Every Governing Person on Their Ongoing FPP Obligation
FPPRs are not a one time form. They are a continuing obligation.
Email every governing person this week. Tell them: if anything changes in their personal circumstances (a charge, a bankruptcy, a regulatory finding against another business they are involved in), they must inform you within 5 business days.
That gives you 5 business days left to notify ASQA inside the 10 day window.
Step 7: Audit Your Third Party and Consultant Arrangements
Anyone outside your direct payroll who has influence on management. Review their status.
External compliance consultants who represent your RTO at audit are explicitly named in ASQA’s high managerial agent definition.
If your consultant does not have an FPP declaration on file with you, that is a gap to close this week.
Step 8: Check Your Website for Outdated Personnel Information
Here’s the connection most RTOs miss.
If your website lists a director who is no longer a director, or an old CEO who left six months ago, that is an evidence trail of a material change you may not have notified ASQA about.
Auditors check websites before they check your files. ASQA may request evidence at any time under their proactive risk based approach.
Run your free RTO Scanner audit. It checks 75-plus ASQA prohibited phrases and validates your RTO code live against training.gov.au. Free, no signup, scored PDF in under 5 minutes. If your website needs a full rebuild after the scan, our complete walkthrough on RTO Website Design Requirements for ASQA Compliance covers every page you need.
Step 9: Diary Your 2027 Annual Declaration on Compliance
The 2026 ADC window closed on 31 March 2026.
The 2027 cycle will reference how you responded to today’s statement.
Add a calendar entry for 1 February 2027: “Review FPP register and material change log for ADC submission”. Future you will thank present you.
What Happens If You Get This Wrong
ASQA’s statement is direct on consequences.
Providers found non-compliant face the full regulatory toolkit. Written directions, conditions on registration, suspension, and in serious cases, cancellation.
From July 2025 to January 2026, ASQA completed 89 performance reviews with only a 62 percent compliance rate. That means 38 out of every 100 RTOs assessed had compliance gaps serious enough to fail. 212 serious matters are currently under investigation by ASQA’s enforcement team.
The statement signals that FPPR and material change notification are now sitting in the high priority regulatory column. Expect them to feature in performance assessments from this month forward.
How This Connects to Your Wider 2025 Standards Work
The fit and proper person framework sits inside the Compliance Standards Instrument 2025.
That is one of the three documents that make up the 2025 Standards. The other two are the Outcome Standards (quality of training delivery) and the Credential Policy (who can deliver and assess).
Today’s statement reminds RTOs of something I have been saying for months.
The 2025 Standards are not just about training delivery quality. The Compliance Standards section, including FPPRs, material change notification, the NRT Logo Conditions of Use, and the marketing requirements, is where ASQA finds the easiest non-compliance findings. See also: RTO Marketing Compliance: The Complete Guide Under the 2025 Standards.
Why? Because they are binary. Either you submitted the notification within 10 business days, or you did not. There is no judgment call.
That is why ASQA is leaning into them.
Frequently Asked Questions About ASQA Fit and Proper Person and Material Changes
How long does an RTO have to notify ASQA of a material change?
You must notify ASQA within 10 business days of the event occurring under section 33 of the National VET Regulator Act 2011. The clock starts on the event date, not the date someone in your organisation realises it happened. Build a trigger checklist into your weekly management meetings to catch events on the day they occur.
What is the cost of non-compliance with ASQA fit and proper person requirements?
ASQA’s regulatory toolkit ranges from written directions through to registration cancellation. The bigger cost is operational. ASQA can impose conditions on your registration, restrict your scope, or block CRICOS variations until issues are resolved. The 7 May 2026 statement confirms providers who fail FPPR or material change obligations will be found non-compliant with the 2025 Standards.
Does ASQA require a fit and proper person declaration from external compliance consultants?
Yes, if the consultant represents your RTO at audit, has an ongoing compliance role, or exercises influence over management direction. ASQA’s published guidance lists external consultants who represent providers at audit as examples of high managerial agents. If your consultant does not have a current FPP declaration on file with your RTO, your next performance assessment will find that gap.
What is the difference between a governing person and a high managerial agent?
A high managerial agent is anyone whose duties are responsible enough that their conduct may fairly be assumed to represent the RTO. A governing person under the 2025 Compliance Standards is broader. It includes any person who oversees, directs, or exercises a degree of control or influence over RTO management or operations. Every high managerial agent is a governing person. Not every governing person is a high managerial agent.
How do I know if a change in my RTO is material enough to notify ASQA?
ASQA’s accountability practice guide asks one question: would this event significantly affect your ability to comply with your obligations under the Act? If yes, notify. Standard examples include changes to CEO, owners with 15 percent or more stakes, legal entity, financial administration status, third party arrangements, and scope delivery capacity. When in doubt, notify.
Can I notify ASQA of a material change after the 10 business day window closes?
Yes, but expect ASQA to record the late notification as a compliance issue. Late notification is better than no notification. Submit it as soon as you realise the deadline was missed, document why it was late in your continuous improvement register, and outline the system change you are making to prevent it happening again.
What happens to my RTO registration if a governing person fails FPP requirements?
It depends on the severity and your response. ASQA assesses each situation holistically. Removing a person who fails FPPRs does not automatically restore compliance, and disclosing reportable history does not automatically mean you fail. ASQA looks at how you handled the disclosure, what controls you have in place, and whether your governance arrangements remain sound.
Do I need to update my Annual Declaration on Compliance after this statement?
The 2026 ADC closed on 31 March 2026, so no immediate update is required. The 2027 ADC (opening early March 2027) will reference how you responded to today’s statement. Document your response now, including the dated entry in your continuous improvement plan, so you have evidence ready when the next ADC opens.
Your Next Step
So there you have it. The full breakdown of ASQA’s 7 May 2026 Statement of Regulatory Expectations and the 9 steps your RTO must run this week.
Quick question before you go. Which of these 9 steps is your biggest gap right now, the governing persons register in Step 1, or the 10 business day notification workflow in Step 4?
If you want to start with the easiest win today, run your free RTO Scanner audit. It will surface the website compliance issues ASQA auditors check first. No signup. Scored PDF in under 5 minutes.
Want help running the full 9 step plan with your team? Book a free 30 minute RTO compliance consultation. No pitch, just a straight conversation about where your gaps are.
Written by Ehtisham Saeed, RTO Marketing Specialist. Creator of RTO Scanner, Easy RTO, RTOGrow SMS, and Expertle. Working exclusively with Australian Registered Training Organisations.
