356 Student fees must be deposited with independent trustee

(1)

If a private training establishment receives any funds paid by or on behalf of a student in respect of a programme or training scheme provided by the establishment, the establishment must—

(a)

deposit those funds, as soon as practicable, with an independent trustee approved by NZQA; and

(b)

hold those funds on trust for the student until they are deposited with the independent trustee.

(2)

If a person to whom section 355 applies receives any funds paid by or on behalf of a student in respect of a programme or training scheme provided by the establishment, the person must—

(a)

deposit those funds, as soon as practicable, with an independent trustee approved by NZQA unless the establishment has made alternative arrangements that are acceptable to NZQA; and

(b)

hold those funds on trust for the student until they are deposited with the independent trustee or in accordance with the alternative arrangements referred to in paragraph (a).

(3)

An independent trustee approved by NZQA must comply with the requirements of any rules made under section 452 relating to student fee protection.

(4)

NZQA—

(a)

may withdraw its approval of a particular trustee if satisfied that the trustee is not managing the trust funds in accordance with the rules; and

(b)

must, if approval for a trustee is withdrawn, appoint a new trustee in accordance with the rules.

(5)

The requirements specified in subsection (1) do not apply—

(a)

in respect of any programme or training scheme that is exempt from those requirements by any rules made under section 452(1)(u); or

(b)

in the case of a student or group of students for whom the private training establishment has deposited, with an independent trustee approved by NZQA, an amount of money that is sufficient to make the necessary refunds to that student or those students under section 357 or 529.

Compare: 1989 No 80 ss 234E, 292G