A racehorse syndicator is a person or business entity who has chosen to either buy or lease a racehorse and then sell shares to consumers on a profit or non-profit basis.
A syndicatee is a person who has chosen to purchase a share in accordance with the terms and conditions prescribed by the syndicator.
A syndicator may also attract consumers with an offer to pool client funds and then use those funds to purchase a racehorse at a later date.
In 1992, the BHA (British Horseracing Authority) then known as BHB, brokered a deal with HMRC (Her Majesty's Revenue and Customs) whereby VAT could be claimed back by consumers who own or lease a racehorse. The industry passionately guards this concession.
All offers to consumers in websites, advertisements etc. are bound by law to comply with The Consumer Protection from Unfair Trading, Regulations 2008.
Compliance with these Regulations not only offers consumers protection but also ensures a level playing field for all those trading in the racehorse syndicate business. As the governing body of the racing industry, The BHA actively investigates any potentially misleading business practices that are brought to their attention.
Rule 30 of the Rules of Racing states:
30. Conduct prejudicial to horseracing
30.1 A Person must not act in any manner which the Authority considers to be prejudicial to the integrity, proper conduct or good reputation of horseracing in Great Britain.
If you believe that a syndicator has contravened Rule 30.1 here is the BHA contact information to report the matter to: firstname.lastname@example.org
Alternatively, you can contact your local TRADING STANDARDS office.
Most racehorse syndicators run their businesses fairly and honestly, therefore hopefully you should enjoy a hassle free service and enjoy participating in the syndicate and enjoy your association with the exciting world of British Horseracing.
An example of a misleading offer could be where a syndicator leases a horse, sets up a syndicate and then portrays his syndicate as 'racehorse ownership'. The syndicatees would be lessees not part-owners in the horse.
Apart from being good business practice, every syndicator should have a set of terms and conditions and these should be available to a potential buyer BEFORE joining.
Anyone who runs a racing club is bound by the principles of fair trading and is bound by the BHA Rules of Racing. The normal distinction between a racing syndicate and a racing club is that the members of a club do not own or lease any of the horses. They are primarily enjoying the entertainment of involvement in the club's horses. Some clubs may distribute race prize money won by the horses to its members, on a pro-rata basis, this normally amounts to a very small sum and therefore should not be the primary reason for joining a racing club.
Whilst we are unable to engage in any correspondence or offer any advice relating to any complaint you may have against a racing syndicate or club, we are keen to learn of any practices that you believe may contravene BHA Rules. Please email: email@example.com