A professional Syndicator is responsible for purchasing a racehorse and syndicating shares to members of the public. They may be aligned with or work closely with trainers who collaborate with them on conformation and breeding. They need to hold an ASIC issued AFSL or be an Authorised Representative holder under an AFSL as you must have the correct licensing to be able to legally advertise shares in a racehorse.
A Syndicator makes their money by putting a margin on the shares or charging an on-going management fee. This occurs when they sell the shares and this information must be declared within their Product Disclosure Statement (PDS). By being transparent they ensure integrity. They also manage the communication between the trainer and owners whom they have sold shares to for the racing career of the horse.
There are strict guidelines around the selling of racehorse shares that a Syndicator must adhere to under the Australian Rules of Racing - these are enforced by the Principal Racing Authority (PRA) Syndication Compliance Officer who works with the Stewards Department within each state as well as communicating with the Australian Securities and Investments Commission (ASIC) on behalf of the PRA in its role as Lead Regulator.
There is no set pathway to becoming a Professional Syndicator however you do need to have a strong knowledge of racing and breeding, horse conformation, communication and business skills as well as an understanding of the Corporations Act, ASIC Corporations (Horse Schemes) Instrument, financial skill set for reporting requirements plus the associated Federal Law requirements in relation to Anti-Money Laundering. It is a highly competitive area and is a difficult business to tap into as consumers are drawn towards proven success.