6.1 Part Summary
This part deals with the types of Horse racing schemes that are permitted under the Act and the ARR.
- Any such scheme established as a [one-off] “private” scheme may not be subject to regulation under the Act. To qualify as a “private” scheme, it MUST NOT require registration under section 601ED. In other words, the scheme MUST NOT have more than 20 members and the person who established it MUST NOT be in the business of dealing in interests in such schemes.
- Any such scheme established by a person (promoter)
who is in the business of dealing in interests in such schemes:
- will, prima facie, be subject to regulation under the Act, regardless of the number of members; and
- MUST be registered with ASIC as a managed investment scheme, UNLESS it qualifies [and is established] as an unregistered scheme that is:
- a personal offer scheme;
- a wholesale scheme; or
- a lead regulator approved (ASIC Instrument compliant) syndicate.
Investors who are “retail clients” are not permitted to participate in a wholesale scheme.
All such schemes MUST comply with the registration requirements under the ARR.