As the importance of shared ownership continues to grow, the regulation of Syndicates and Racing Clubs is a key priority for the BHA.
While advice can be found on how to register a shared ownership here, along with a flow to help you decide which ownership is right for you if unsure, detailed below is information for Syndicators/Club Managers (and their members) regarding the regulation of Syndicates and Racing Clubs.
In addition, following an industry-wide consultation on the regulation of shared ownership in 2020, the findings of which and measures to be implemented can be found here, also explained is how regulation is set to change in 2021/22 and how this will affect Syndicates and Racing Clubs.
Syndicates are a form of ownership where the members own/lease one or more horses. A Syndicate is managed and administered by the Syndicator(s) and only the syndicator(s) must register as a Sole/Company owner. It isn’t necessary for members of the Syndicate to register as owners.
As part of the registration process Syndicators are asked to list all members of the Syndicate and this should be kept up to date throughout the life of the Syndicate.
In addition, any Syndicate which advertises for participation publicly or in which the Syndicator is paid for their role must adhere to the Syndicate Code of Conduct. Syndicators should note that from 1st May 2021 the Code of Conduct is set to change, more information can be found below.
Racing Clubs are a form of ownership where members enjoy some of the benefits of being a racehorse owner, except they do not have any ownership rights of the horse. Instead, the horse is owned/leased by the Racing Club itself. A Racing Club is managed and administered by the Club manager(s). Only individuals who want to set up or administer a Racing Club must register as a Sole/Company owner. It isn’t necessary for members of a Racing Club to register as owners.
Upcoming changes for Syndicates
From the 1st May 2021, the Syndicate Code of Conduct is being updated and will include new terms which must be covered in any Syndicate agreement. The new Code can be found here along with detailed FAQs. This will immediately apply to all newly registering Syndicates, with existing Syndicates required to comply following a twelve-month grace period to ensure their contracts are updated.
In addition, from the same date, the BHA will allow for the addition of Syndicate members who accumulate bad debt to the Forefit List. In the case of a Syndicate receiving a significant amount of prize-money, the BHA will also begin asking Syndicators to outline how and when this will be paid to Syndicate members. These changes will apply to all Syndicates but will not affect the time taken to pay prize money.
In Summer 2021 the BHA will introduce additional questions into the Syndicate registration form to better understand financial arrangements and how upfront costs will be covered. These questions will only apply to Syndicates required to comply with the Code of Conduct.
From early 2022, Syndicators will be asked to record the % shares of their members with the BHA. This will be followed by allowing Syndicate members with ≥2% share access to view their ownership online. In addition, the BHA will also begin auditing a proportion of Syndicate contracts to ensure compliance with the Code of Conduct and to confirm all mandated terms are covered.
Upcoming changes for Racing Clubs
From the 1st May 2021, a new Racing Club Code of Conduct is being introduced. The new Code can be found here along with detailed FAQs. This will immediately apply to all newly registering Racing Clubs, with existing Racing Clubs required to comply following a twelve-month grace period to ensure their contracts are correct.
From early 2022, the BHA will also begin auditing a proportion of Racing Club contracts to ensure compliance with the Code of Conduct and to ensure all mandated terms are covered.