Recommendation 21

It is worrying that some institutions would be unwilling to engage with the OfS in the early stages of falling into financial difficulty for fear of a punitive regulatory response, especially given the OfS’ risk-based approach to engagement. This hampers the ability of institutions and the regulator to plan together and take early action against emerging financial risks. Trust would be improved by greater mutual engagement between providers and the regulator, which could help improve the willingness of providers to discuss emerging problems. The OfS’ publication of case studies, providing more clarity for providers on its approach, is welcome.