23/07/2013 - 12:51

ASIC relief gone to the dogs

23/07/2013 - 12:51

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(Photo: Greyhounds WA)

The corporate regulator is looking at a proposal to relieve greyhound racing and breeding syndicates from Corporations Act provisions which may be too onerous for the small-scale nature of these investment groups.

The Australian Securities and Investments Commission has released a consultation paper on whether syndicates that involve people contributing money for the use of a greyhound they own together with others, which has associated rights to any benefits arising, should necessarily be considered to be investing in financial products.

The greyhound industry follows in the hoof prints of horse racing, which has already won a reprieve from such oversight.

ASIC commissioner Greg Tanzer said in a statement 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 said it considered 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,” Mr Tanzer said.

“They also provide commercial and practical usefulness for the promoters.”

The question is whether boat owners will be next?

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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