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By She Yu, Research Department of Social Development, DRC; Que Mingkun, College of Education, Zhejiang University; & Gao Junhua, Chongqing Academy of Education Science

Research Report, No.114, 2021 (Total 6179) 2021-5-11

Abstract: The non-standard operation mode of extracurricular training institutions featured by prepayment has posed great risks and proved difficult for supervision. As of the end of 2020, many local authorities across China had issued policies to supervise the prepayment practice of extracurricular training institutions, and made proactive explorations on third-party fund regulation. The implementation of third-party fund regulation is an important approach for managing extracurricular training institutions in the new era, but there are some prominent problems to be addressed. For instance, the real-time and targeted supervision of special accounts is not in place, the minimum balance margins system lacks anti-risk ability, illegal institutions affect the smooth implementation of the policies of third-party fund regulation and the third-party fund regulation by local authorities needs to be coordinated. In this regard, efforts need to be made to improve the special account supervision system, optimize the sources, standards and use of the minimum balance margins, attach great importance to the management of illegal extracurricular training institutions, give full play to the role of the joint conference system on privately-run schools and promote third-party fund supervision of extracurricular training institutions. Apart from enforced government supervision, extracurricular training institutions also need to improve internal control and self-discipline.

Keywords: third-party fund regulation, extracurricular training, standard operation, policy options