Racing Australia has welcomed the announcement by Australian Securities & Investments Commission (ASIC) of three changes to legislation pertaining to horseracing syndicates.
In future, the maximum number of members of a syndicate will be 50, having been increased from the previous limit of 20. The investment limit for a syndicate has also been raised – from A$250,000 to A$500,000 – and there will be addition requirements for a Product Disclosure Statement for group ownership.
Racing Australia's CEO Peter McGauran commented, “Racing Australia endorses ASIC's reforms as encouraging greater participation in horse ownership with enhanced transparency.”
He continued, “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.
“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.”