A new bloodstock industry code of practice, which places banishing bribery from sales and assisting those impacted by alleged malpractice by establishing independent legal advice, is "a significant step forwards in terms of enhancing trust in the process of buying and selling bloodstock in Britain and Ireland," according to new British Horseracing Authority chief executive Julie Harrington.
The expanded code of practice was one of a number of recommendations of the Bloodstock Review commission by former BHA chief executive Nick Rust in 2017 and published in December 2019 following investigations led by retired former senior police officer Justin Felice.
It replaces the existing document from 2009, under which those conducting the review found no evidence of any complaints being made despite concerns of improper behavior at the sales.
The new code, which has been adopted by the BHA and "supported" by the Irish Horseracing Regulatory Board, focuses heavily on attempting to eliminate bribery at the sales, noting that "bribery, particularly of agents, is a central concern to which the code is directed."
Harrington said: "The BHA welcomes the publication of the code of practice, and the collaborative industry approach that has been taken to achieve this milestone. The code has been approved by the BHA's board and will be incorporated into the rules of racing.
"The code will represent a significant step forwards in terms of enhancing trust in the process of buying and selling bloodstock in Britain and Ireland, and was one of the core recommendations of the Review of buying and selling practices of bloodstock and racehorses within British racing which was commissioned by the board of the BHA.
"It is essential if we are to attract and retain owners in the sport that anyone involved in the purchase of bloodstock can have confidence that they are being treated fairly, and the code will help further enhance British racing's reputation on this front."
Brian Kavanagh, outgoing chief executive of Horse Racing Ireland, added: "Horse Racing Ireland and the IHRB welcome the new code of practice. We acknowledge the work and collaboration by the Bloodstock Industry Forum in drafting this document, and look forward to continuing our work with all stakeholders."
In a change to the former code, payments to individuals buying horses, sometimes referred to as 'luck money' are expressly forbidden rather than needing to just be declared.
The code adds: "Participants should be clear that there can generally be no legitimate reason for an agent of the purchaser to be rewarded in any way by the vendor and parties related to the vendor … this is whether or not the payments are as described as 'luck money.'"
The Bloodstock Industry Forum, another recommendation of the review, has also established a panel lawyer in Britain and Ireland to allow those who believe they have seen, or been exposed to, malpractice to get free and confidential legal advice.
BIF chairman Jimmy George said: "The new code will be formally incorporated into the rules of British racing and appear in all Tattersalls and Goffs sales catalogs, starting with the forthcoming Goffs UK Premier Yearling Sale. It will also be widely disseminated and available through all BIF member organizations as well as being subject to regular review.
"Importantly the new Code of Practice has introduced a complaints procedure independent of the industry bodies, and individuals found to be in breach of the code, either in criminal or civil proceedings or having been sanctioned by the BHA for breach of the code, will also be subject to exclusion from participating at Tattersalls and Goffs sales in Britain and Ireland."
As well as banning 'luck money,' or similar, payments, the code seeks to stop agents—defined as anyone buying a horse on behalf of someone else—acting for both the purchaser and vendor in any sale and "collusive 'bidding up'" where an agent and vendor conspire to inflate the price of a horse for their own benefit. The code states that "such practices have no place in the bloodstock industry."
The new code, which has eight rules covering the duty of those buying and selling horses, bribery, authority to act, and bidding up, is due to come into force from Aug. 16 and "will be reviewed annually to ensure that it remains robust and fit for purpose."
The code outlines that those found in breach by the BHA, or IHRB, are liable to be banned from licensed premises, such as racecourses, while Tattersalls and Goffs will also now be able to ban people from attending and participating in sales.
Henry Beeby, Goffs Group chief executive, said: "I am pleased that the British and Irish racing and bloodstock industries have come together to deliver one gold standard to enhance the buying and selling of bloodstock on these shores.
"From an auction house perspective, we certainly insist on the same transparency and high standards of integrity at every sale we conduct regardless of location, and feel this new code addresses all the issues raised in the BHA report."
