Maintaining confidence in syndicates is crucial says BHA after Supreme collapse

The Racehorse Owners Association and the BHA have stressed work is ongoing to help reassure and provide confidence to individuals buying into syndicates following the high-profile collapse of the Supreme Horse Racing Club.

Supreme, which had its ownership cancelled by Horse Racing Ireland (HRI) on Thursday, is the latest syndicate to run into significant difficulties following the likes of EPDS Racing and Layezy Racing, which were both hit by financial issues during the last 12 months.

Collaborative work is already underway between groups across racing with the possibility of bringing in an Australian-style model, where syndicate managers are licensed and the groups classified as managed investment schemes.

Charlie Liverton, chief executive of the ROA, said on Friday: "There are talks going on and around that table are industry stakeholders, and part of the conversation that is going on is very much centred around how can we give those people looking to buy shares in a syndicate comfort about doing so.

"We’ve used Australia as a beacon example. In Australia to be a syndicate manager you have to be licensed by the equivalent of the Financial Conduct Authority, and from that perspective there’s absolute clarity and comfort there because they are viewed effectively as collective investments schemes, which is what they are.

"We want to be giving confidence in how the syndicates are run and that is one possible way."

HRI stated on Thursday that it would share with the BHA information coming out of the collapse of Supreme, whose managers have been accused of overselling shares in horses, including Magners Cheltenham Gold Cup favourite Kemboy.

The BHA is looking into tighter regulation of syndicates as this area grows as a route to ownership with approximately 2,135 registered with the regulator.

These syndicates accounted for 20 per cent of the ownership base and had an average of ten owners per horse in statistics for the first half of this year.

Charlie Liverton: 'I think there’s a lot of really good stuff going on with syndicates at the moment'Credit: Edward Whitaker

A BHA spokesman said on Friday: "Getting involved in a syndicate is an affordable and fun way to enjoy racehorse ownership.

"Anybody that runs a syndicate must be registered with the BHA and they are also required to confirm their compliance with a code of conduct which was introduced in 2017. Complaints are very rare and are usually quickly resolved.

"However, as syndication continues to grow, we plan to look at how this area is regulated. It is critical that the public retain trust in syndicates and have confidence that they are going to be well-run.

The Cool Silk Partnership members cheer on their Royal Ascot winner Prince Of Lir in the 2016 Norfolk StakesCredit: Alan Crowhurst

There are various ways to achieve this with one option being to enhance the level of assessment of prospective managers’ capability to run a syndicate as part of the application process. The BHA liaises closely with our counterparts in international jurisdictions over issues such as this."

Despite the negatives coming from the likes of Supreme’s demise, Liverton believes syndicate ownership still offers an excellent experience for most owners, and is an area racing should continue to promote.

"I think there’s a lot of really good stuff going on with syndicates at the moment and there are a lot of good syndicate managers who are delivering an amazing experience on the racecourse and off the racecourse," he said.

"The growth in syndicates through the trainers as well is fantastic to see and from that perspective it’s something racing should be proud of and look to promote and give as much access as possible for those who want to join in."

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