Horse racing syndicates will be able to raise more money and include more owners without registering as managed investment schemes following changes introduced by financial regulator ASIC.
The regulator has increased the limits applying to eligible racing syndicates from $500,000 and 50 participants to $750,000 and 75 participants under a new regulatory regime that has already taken effect.
The changes provide syndicate promoters with greater capacity to raise funds and accommodate additional owners while continuing to rely on relief from the managed investment scheme registration requirements.
Promoters seeking to use the relief must still hold an Australian financial services licence (AFSL) authorising them to provide the relevant financial services for the syndicate.
The existing requirement surrounding Product Disclosure Statements also remains in place.
Each PDS must be approved by an ASIC-approved lead regulator, typically the governing racing authority in the relevant state, before it can be provided to prospective syndicate participants.
The higher $750,000 fundraising and 75-participant thresholds represent a 50 per cent increase on the previous limits.
