Syndication

The information on this page relates to syndications that are Managed Investment Schemes. If you are registering ownership of a thoroughbred racehorse for fun with friends or family, visit the thoroughbred registrations page to find the forms relating to group syndicate forms.

Syndications that are Managed Investment Schemes

This section is specific for horse racing and breeding schemes which includes the offering of shares, syndication, promotion and the management of such syndicates.

Any person who seeks to offer a horse for sale by shares or syndication should be aware that such activity is regulated by the Australian Securities and Investments Commission (ASIC).

The ASIC approach to these schemes is outlined in Regulatory Guide 91 (PDF, 137kb).

It is recommended that any person intending to syndicate a horse for racing or breeding should consider obtaining professional legal and accounting advice where appropriate.

How do I know if I need to register a Managed Investment Scheme

A syndicate may fall within the definition of a Managed Investment Scheme where:

  • members of the syndicate contribute money to gain an interest in the syndicate;
  • the money is pooled in a common enterprise of horse racing to produce winnings;
  • the members do not have day to day control over the syndicate.

A Managed Investment Scheme must be registered with ASIC. However certain horse racing schemes (syndications) will qualify for relief from direct registration with ASIC.

To qualify for relief the syndications:

  • must be conducted by a registered promoter, approved by the lead regulator (control body for racing in each state);
  • include a promoter who holds an AFSL licence;
  • must make available to prospective clients a pre-approved product disclosure statement that contains all relevant information;
  • must be limited to no more than 20 members;
  • must not seek a total amount of more than $250,000;
  • must lodge reports with the regulator as required;
  • must meet all other requirements of ASIC and the lead regulator including obtaining advertising approval;
  • the promoter must be a company.

If you have queries regarding the syndicates or Managed Investment Schemes contact the Licensing department via email: licensing@qric.qld.gov.au or call: 1300 087 021.