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Become an Authorised Syndicator

Having a share in a horse managed by an authorised syndicator is a great way for the general public to be introduced to horse ownership.  Syndicate ownership helps share the costs and fun of owning a racehorse and makes the dream of ownership much more achievable.

As an authorised syndicator, you can publicly advertise opportunities to buy shares in a thoroughbred. You may wish to do this as a business opportunity, a way of marketing horses in your stable, or perhaps as a way of introducing new people to racing and sharing the ownership experience.

This section will help guide you through the process of becoming an authorised syndicator so you can publicly advertise shares in a thoroughbred.  We can also offer you opportunities to advertise and market your horses.

Why should I become an authorised syndicator?

If you wish to publicly advertise opportunities to buy shares in a thoroughbred, we strongly advise you to apply to become an authorised syndicator and get NZTR approval of your disclosure statements before you advertise your offer.

NZTR has produced a Bloodstock Syndication Code of Practice to help authorised syndicators meet the requirements of the industry and the FMA, while offering full disclosure and transparency for investors. The Code of Practice is the Second Appendix of the Rules of Racing.

If you advertise shares without being an authorised syndicator and without NZTR approval of your disclosure statements, your offer will be regulated by the Financial Markets Authority (FMA), and may breach the Financial Markets Conduct Act 2013 if you haven’t followed the requirements of that Act.

If you are not advertising your horse, and it will be owned by a group of friends or family members, this is a private syndicate and doesn’t come under the same regulations.


How do I become an Authorised Syndicator?

If you wish to become an authorised syndicator, you need to follow the process outlined in this section and provide the listed documents to NZTR. If you have any questions, please contact Head of Racing Administration, Colin Hall on 04 576 6261 or [email protected]

Applying to become an Authorised Syndicator

  1. Contact the Head of Racing Administration, Colin Hall on 04 576 6261 or [email protected]
     and request an application pack or download one here.
  2. Submit your application to NZTR. Make sure you have included the following documents:
    • Police vetting form, authorising NZTR to check for any criminal convictions
    • 2 personal references (1 financial and 1 character)
    • Application fee of $575.00 including GST for people new to NZTR or $345.00 including GST for Class A Trainers.
    • Proof of identity (copy of birth certificate, passport or driver’s licence)
    • Passport photo
    • Completed Compliance Agreement
    • Pro forma Disclosure Statement.
  3. Arrange an interview with a Racing Integrity Unit Investigator or Stipendiary Steward, who will assess your knowledge, experience, competence and suitability to be an authorised syndicator and make a recommendation to NZTR.
  4. If your application and Disclosure Statement are approved, you can now publicly advertise shares in thoroughbreds.
  5. NZTR may allow you to use the Authorised Syndicator logo after your first Disclosure Statement is approved.

Why would my application be declined?

You are unlikely to be approved by NZTR as an authorised syndicator if you:

  • Are, or have ever been, disqualified under the Rules of Racing of any racing code
  • Are younger than 20 years old
  • Do not display sufficient competence and knowledge of the industry 
  • Have a criminal record, particularly convictions for fraud or dishonesty offences
  • Are deemed not to be of good character 
  • Do not have a sound financial history as shown by credit record checks or other evidence.

You may appeal the decision to NZTR if your application is declined.

 

What do I need to do once my application is approved?

Once your application has been approved, you need to provide the following documents to NZTR before you can advertise shares in your horse:

  • Completed disclosure statement
  • Syndicate agreement
  • A veterinary report for each horse
  • Two valuations for each horse (unless the horse is leased).

The disclosure statement must list any fees, commissions, rebates or benefits that the syndicator will receive, and any interest that the syndicator has or had in the horse on offer.

A syndicate agreement must contain a disputes resolution process and, if the syndicate has a leased horse with a right to purchase, the agreement must also contain a provision stating that two valuation reports must accompany any recommendation to members to exercise that right of purchase.

Veterinary reports may only be obtained from veterinary surgeons who meet the following criteria:

(a) The veterinary surgeon must hold a current annual practising certificate issued by the Veterinary Council of New Zealand
(b) The veterinary surgeon must be experienced in equine practice
(c) The veterinary surgeon must spend the majority of his or her professional time in equine practice
(d) The veterinary surgeon must be competent in the field in respect of which he or she is certifying - ie racing or breeding. 

Valuation reports may only be obtained from Bloodstock Valuers who are, at the time of the report, entered in the Register of Bloodstock Valuers and who are independent both of each other and of the Syndicate Promoter.

Where bloodstock is purchased from countries outside New Zealand the following criteria apply in respect of valuation and veterinary reports:

(a) For horses purchased in Australia, a Syndicate Promoter must use either bloodstock valuers and veterinary surgeons who have been approved under the New South Wales or equivalent system of syndication, or New Zealand bloodstock valuers and veterinary surgeons.
(b) For horses purchased from any other country, a Syndicate Promoter must use reputable bloodstock valuers and veterinary surgeons who are recognised as such by the principal racing authority in that country or the state in which the horse is located. The Board may suspend a particular syndication if it believes that either the bloodstock valuers or the veterinary surgeons used are not competent in the area in which they are certifying.

NZTR can help you prepare your documents if needed. If you have any questions, please contact Head of Racing Administration, Colin Hall on 04 576 6261 or [email protected]

 

Advertising your horse

Once your application to become an authorised syndicator and your disclosure information is approved by NZTR, you can publicly advertise shares in your horse. NZTR can help you develop and write your first disclosure statement. We will then work with you to help promote your offer once your disclosure statement has been approved. We supply free advertising space on our Love Racing Facebook page and in the Thoroughbred Racing Monthly and NZ Horse & Pony magazine.

We may also allow you to use the Authorised Syndicators Logo on your website and syndication offerings, once you meet and acknowledge the terms and conditions of use.

Advertising must comply with the fair dealing provisions of the Financial Markets Conduct Act, as well as being subject to the Fair Trading Act and the Consumers’ Guarantees Act. Advertisements must be clear, factual and advise that the advertiser is an Authorised Syndicator.

 

Forming the syndicate

Once the syndicate is formed, the syndicator should provide NZTR with the following information:

  • Change of ownership form listing each syndicate member’s details
  • A signed Promoter Declaration
  • A signed Applicant Acknowledgement form for each syndicate member.

A horse cannot be registered for racing or breeding if this information is not provided to NZTR.

 

Financial reporting requirements

Each syndicate must operate a bank account solely for the syndicate and provide financial reports to the syndicate unless they meet the criteria outlined in Clause 6.4 of the Code of Practice.

The following information must be included in the financial reports provided to your syndicate members:

  • Balance sheet
  • Profit and loss statement
  • A schedule or chart showing member contributions and syndicate distributions for each member
  • Bank confirmation of account balance OR audit statement
  • Previous year’s comparison of balance and profit and loss
  • Statement detailing the insured value of each horse at the end of the reporting period.

Although not a requirement, it is also useful to include the horse’s performance statistics.

For more detailed information about what is required in your financial report, see the Bloodstock syndication COP guidance pack.

NZTR may request a copy of the syndicate financial reports, or a copy of invoices sent to members for an “Invoice on costs” syndicate (i.e. meets the criteria of Clause 6.4 of the Code of Practice). NZTR may also ask an authorised syndicator to conduct an audit of the financial reports.