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Racing Australia Approves ASIC’s Syndicate Amendments

Racing Australia has welcomed ASIC’s recent announcement of its new legislative amendments to ratify 3 Class Orders on horse racing syndicates. Horse breeding schemes are also part of these amendments.

australian racing syndicate

The Australian Securities & Investments Commission (ASIC) declared 3 key changes to horse racing syndicates, namely:

  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
  3. Imposing additional content requirements for a Product Disclosure Statement for a horse racing syndicate.

ASIC Amendments to Complement Minor Shareholders

Racing Australia’s CEO Peter McGauran said that “Racing Australia endorses ASIC’s reforms as encouraging greater participation in horse ownership with enhanced transparency. Racing Australia strongly supports raising the investment limit to $500,000 and increasing the maximum number of members of a syndicate to 50.”

McGauran also commented that the increasing 50 members in a syndicate will present a more affordable option for shareholders to acquire a smaller percentage of a horse. The original Class Order of 2002 has made the cost to purchase and race a horse less affordable for some purchases. Small owners will now have the capacity to participate by attaining a minor share of a racing horse.

New Investment Cap Brings Opportunities

Racing Australia also says that the new $500,000 cap will complement approved syndicators in terms of better purchasing choices and opportunities at the major yearling sales. It gives them a great opportunity 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.” McGauran added.

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