Racing Australia welcomes ASIC's announcement on Wednesday of its new legislative instrument to replace three Class Orders on Horse racing syndicates and Horse breeding schemes that were due to expire in the near future.
ASIC's key changes to Horse racing syndicates are:
1. Raising the investment limit for a horse racing syndicate from $250,000 to $500,000;
2. Increasing the maximum number of members for a horse racing syndicate from 20 to 50; and
3. Imposing additional content requirements for a Product Disclosure Statement for a horse racing syndicate.
"Racing Australia endorses ASIC's reforms as encouraging greater participation in horse ownership with enhanced transparency." Racing Australia CEO Peter McGauran said today.
"Racing Australia strongly supports raising the investment limit to $500,000 and increasing the maximum number of members of a syndicate to 50."
"The increase to 50 members in a syndicate will make racing a horse a more affordable option with purchasers able to acquire a smaller percentage share in a horse. The cost to purchase and race a horse has increased since the inception of the original Class Order in 2002.
"The increase to 50 members will encourage greater participation by small owners," Mr McGauran said.
"Approved syndicators will also benefit from the new $500,000 cap as they will have greater purchasing choices and opportunities at the major yearling sales. This will also allow participants to purchase a more affordable share in a well bred horse.
"Racing Australia recognizes ASIC's detailed and careful consideration of the issues and its commitment to enacting reforms which safeguard the interests of owners whilst providing opportunities for the industry to grow," Mr McGauran concluded.
Racing Australia Release