ASIC’s New Horse Schemes Instrument

ASIC has released the ASIC Corporations (Horse Schemes) Instrument 2026/723, replacing the previous 2016 Instrument.

The new Instrument increases the participant and fundraising limits for eligible horse racing syndicates, while retaining the core regulatory framework. For syndicators and owners, this means greater capacity within a system that continues to require disclosure, licensing and oversight.

Here’s an overview of the key changes and what they mean in practice.

* Higher participant and fundraising limits

The new Instrument increases two thresholds for eligible horse racing syndicates relying on relief from managed investment scheme registration:

Threshold Previous limit New limit
Number of participants 50 75
Total amount raised from issuing interests $500,000 $750,000

ASIC has explained that these increases recognise the rising costs of operating racehorse syndicates, including bloodstock and training costs. Increasing the participant limit also helps maintain affordable participation as the fundraising limit rises.

These thresholds apply to access to the Instrument’s registration relief. They are not a blanket permission to establish or promote a syndicate without meeting the other conditions.

* The regulatory framework remains

An important distinction is that relief from registering a syndicate as a managed investment scheme does not remove the licensing and disclosure requirements that apply to its promotion.

The new Instrument retains the core framework for eligible racing syndicates, including:
• AFS licensing requirements for promoters.
• Product Disclosure Statement (PDS) requirements and approval by the relevant lead regulator.
• Racing regulator supervision.
• Financial reporting obligations.

ASIC has retained the existing co-regulatory model, which combines the racing expertise and day-to-day supervision of lead regulators with ASIC’s oversight.

For prospective owners, the PDS remains an important document for understanding the syndication being offered, its costs, risks and ownership arrangements.

* PDS disclosure requirements have been retained

During consultation, industry participants proposed changes to disclosure requirements, including simplified documents and more streamlined approval processes.

ASIC has not changed the disclosure requirements under the Instrument. Its response emphasised the role of disclosure in helping people make informed decisions and compare different syndications.

ASIC also noted that industry participants and lead regulators can work together on streamlined approval processes, such as standardised disclosure templates, without changing the Instrument itself.

* Further guidance is coming

ASIC has advised that Regulatory Guide 91: Horse breeding schemes and horse racing syndicates will be updated in the coming months.

The revised guidance will be important in understanding how ASIC explains the operation of the new Instrument. Stable Connect will keep its Authorised Representatives informed as further guidance becomes available.

* How Stable Connect can help

Stable Connect supports racehorse syndicators across Australia through AFSL licensing, compliance, PDS preparation and review, and ongoing administration.

As the new Instrument is put into practice, we’re helping our Authorised Representatives understand the changes and consider how they apply to their businesses.

If you have questions about the new Instrument or are considering becoming a racehorse syndicator, contact Stable Connect at info@stableconnect.com.au.