The government is set to decide whether to make BPP a university, creating the UK¡¯s second for-profit institution with the title, just as its US parent company faces ¡°adverse impact¡± from a sanction against one of its other institutions.

The ÖйúAƬ Funding Council for England board considered BPP¡¯s title application on 4 July. Hefce ¨C which has to consider if an institution¡¯s corporate and financial governance makes it fit for university status ¨C will shortly send its recommendation to the Department for Business, Innovation and Skills.

BIS, which decides whether private institutions should receive the title, is expected to reach a decision this month.

BPP University College submitted the application in January. It said the delay was owing to problems in establishing the title process for non-charitable applicants.

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Meanwhile, BPP¡¯s parent, Apollo Group, has been facing problems on the other side of the Atlantic. The Higher Learning Commission of the North Central Association of Colleges and Schools, a US accrediting body, recommended in January that the Apollo-owned University of Phoenix be put on probation because of concerns about the institution¡¯s ¡°insufficient autonomy¡± from Apollo.

On 10 July Apollo announced that Phoenix had successfully appealed against that judgement and has now had its accreditation reaffirmed for a 10-year period.

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However, Phoenix has been ¡°put on notice¡± for two years by the HLC. In 2014, Phoenix must show it has ¡°ameliorated the issues that led to the notice sanction in the areas of governance, student assessment and faculty scholarship/research for doctoral programs¡±, Apollo says in its corporate filing on the matter.

Apollo adds that Phoenix will also be required to report on other areas of concern ¡°including retention and graduation rates, three¨Cyear cohort default rates, and credit hour policies and practices relating to learning teams¡±.

Apollo also warns: ¡°We believe the imposition of the sanction of notice on University of Phoenix could adversely impact our business.¡±

Hefce has refused to comment on whether it took Apollo¡¯s travails into account in its recommendation on university title for BPP.

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The creation of the UK¡¯s first for-profit university, the University of Law, was rushed through in November 2012 to meet a deadline in its sale to Montagu Private Equity, THE revealed earlier this year.

john.morgan@tsleducation.com