ASIC Corporations (Horse Schemes) Instrument 2016/790 (Cth)

ASIC Corporations (Horse Schemes) Instrument 2016/790

About this compilation

Compilation No. 2

This is a compilation of ASIC Corporations (Horse Schemes) Instrument 2016/790 as in force on 5 October 2021. It includes any commenced amendment affecting the legislative instrument to that date.

This compilation was prepared by the Australian Securities and Investments Commission.

The notes at the end of this compilation (the endnotes) include information about amending instruments and the amendment history of each amended provision.

Contents

Part 1—Preliminary 1 Name of legislative instrument 3 Authority 4 Definitions Part 2—Exemptions 5 Horse racing syndicates 6 Horse Breeding Schemes Part 3—Savings and transitional 7 Horse racing syndicates 8 Horse breeding schemes Endnotes Endnote 1—Instrument history Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Corporations (Horse Schemes) Instrument 2016/790.

3 Authority This instrument is made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001 (the Act).

4 Definitions (1) In this instrument: financial statement, in relation to a horse racing syndicate, means a true and fair profit and loss account and statement of assets and liabilities for the syndicate. financial year, in relation to a horse racing syndicate, means a period of 12 months that ends on 30 June or any other day that is specified in any agreement between the manager and the lead regulator of the syndicate as the day on which the financial year for the syndicate will end. horse racing syndicate means a managed investment scheme that has the principal purpose of racing one or more horses and distributing prizemoney won by the horse or horses to the participants in the scheme. lead regulator, in relation to a horse racing syndicate, means a body that: (a) is responsible for the administration of thoroughbred racing or harness racing in a State or Territory in this jurisdiction; and (b) has entered into memorandum of understanding with ASIC that ASIC is satisfied meets the requirements of subsection (2); and (c) is approved in writing by ASIC for the purposes of this paragraph. manager: (a) in relation to a horse racing syndicate, means the person: (i) holding office as manager under the syndicate agreement; or (ii) otherwise holding office as manager of the horse racing syndicate with the approval of the lead regulator; and (b) in relation to a private stallion scheme, means the person named as manager in the stallion scheme agreement. offer includes an invitation to make an offer or an application. offeree means a person who is offered an interest in a horse racing syndicate or a private horse breeding scheme. participant means a person who holds a beneficial interest in a horse racing syndicate or private horse breeding scheme whether jointly or otherwise. personal offer: (a) in relation to a private broodmare scheme, means a personal offer within the meaning of subsection 1012E(5) of the Act; and (b) in relation to a private stallion scheme, means a personal offer within the meaning of subsection 1012E(5) of the Act that is accompanied by a copy of the proposed stallion scheme agreement. private broodmare scheme means a managed investment scheme to which all of the following apply: (a) the principal purpose of the scheme is to breed horses out of broodmares to which the scheme relates; and (b) each interest in the scheme is issued as the result of either: (i) acceptance of a personal offer; or (ii) an offer which does not need a Product Disclosure Statement (other than because of section 6); and (c) none of the offers of interests in the scheme results in the operator of the scheme, together with any associates of the operator, having issued or sold in a 12 month period more than 20 interests in managed investment schemes, the principal purpose of which is to breed horses. private horse breeding scheme means a private broodmare scheme or a private stallion scheme. private stallion scheme means a managed investment scheme to which all of the following apply: (a) the principal purpose of the scheme is to acquire a stallion and provide stud services of the stallion; (b) each interest in the scheme is only able to be acquired under a stallion scheme agreement and is issued as the result of either: (i) acceptance of a personal offer; or (ii) an offer which does not need a Product Disclosure Statement (other than because of section 6); (c) none of the offers of interests in the scheme results in the operator of the scheme, together with any associates of the operator, having issued or sold in a 12 month period more than 40 interests in managed investment schemes, the principal purpose of which is to breed horses; (d) each promoter of the scheme holds either: (i) an Australian financial services licence; or (ii) at least 10% fully paid of all interests in the scheme. standard form, a finance lease agreement is in a standard form in relation to a horse racing syndicate if the terms of the agreement have been approved for use in relation to the syndicate by the lead regulator with whom the promoter of the syndicate is registered. stallion, in relation to a stallion scheme agreement, means the stallion identified in the stallion scheme agreement. stallion scheme agreement, in relation to a private stallion scheme, means a written agreement which includes provisions to the effect of all of the following: (a) requiring that the scheme relates to one stallion and no other horse or investment; (b) requiring that the stallion stand at stud only in this jurisdiction for the first three full stud seasons from the date the stallion is acquired for the scheme; (c) providing that participants will, as tenants in common, own the whole of the legal and equitable title to the stallion free of encumbrances; (d) prohibiting the financing of the purchase of the stallion other than from the proceeds of the issue of interests; (e) providing that offerees receive a full refund of application money on written request received by the person responsible for accepting payment of the money within 3 days after payment of the money;