Any horse racing scheme established as the result of a person (promoter) being in the business of promoting [dealing in interests in] such schemes MUST be either:
- a registered managed investment scheme – interests may be made available to prospective investors who are either “retail clients” or “wholesale clients”. There are no statutory requirements (restrictions) relating to either the number of participants, or the total amount sought, from the “issuing” of scheme interests, for this type of scheme. Disclosure of key information in a PDS is required; or
- an unregistered scheme that is:
- a personal offer scheme – interests may only be made available by “personal offer” to prospective investors who are either “retail clients”, or “wholesale clients”. A scheme of this type is not required to be registered, PROVIDED THAT it complies with the 20/12 Rule. There are no prescribed disclosure requirements;
- a wholesale scheme – interests may only be made available to prospective investors who are “wholesale clients”. A scheme of this type is not required to be registered. There are no statutory requirements (restrictions) relating to either the number of participants, or the total amount sought, from the “issuing” of scheme interests for this type of scheme. There are no prescribed disclosure requirements; or
- a lead regulator approved (ASIC Instrument compliant) syndicate – interests may be made available to prospective investors who are either “retail clients”, or “wholesale clients”. A scheme of this type is relieved from the requirement to be registered, PROVIDED THAT it complies with the terms of the ASIC Instrument. It MUST NOT have more than 50 members and the total amount sought from the issue of scheme interests MUST NOT exceed $500,000. Disclosure of key information in a PDS approved by a lead regulator is required.