ASIC today released a consultation paper on proposals to relieve greyhound racing and breeding syndicate schemes from certain provisions of the Corporations Act 2001 (Corporations Act).
Greyhound racing and breeding syndicates involve people contributing money for the use of a greyhound they own together with others for the right to benefits from a scheme. Interests in these schemes are generally financial products subject to the regulation of the Corporations Act.
Commissioner Greg Tanzer said that subject to conditions, class order relief from certain provisions of the Corporations Act may be appropriate for small-scale greyhound racing and breeding syndicate schemes.
ASIC has previously given relief to horse racing syndications relying on a co-regulatory arrangement between ASIC and horse racing industry regulators. In view of the relatively low financial exposure of small-scale greyhound schemes, ASIC considers that there may be an argument that the costs of compliance with the relevant sections of the Corporations Act may be an unreasonable burden.
'The proposals seek to achieve the right balance of regulatory obligations and safeguards for investors. They also provide commercial and practical usefulness for the promoters,' Mr Tanzer said.
Background
ASIC has been asked to consider granting relief to greyhound racing and breeding syndicate schemes, similar to that given to the horse racing industry.
ASIC acknowledges that the predominant purpose of a greyhound racing and breeding scheme is generally not for a financial return but rather for the intrinsic value and enjoyment of racing a greyhound and being active in the sport. Similar considerations have led to ASIC granting relief to promoters of horse racing syndications: Regulatory Guide 91 Horse racing and breeding (RG 91).
ASIC therefore seeks your views on the proposed approach.
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