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Sales Code Bans "Inducements & Secret Commission"
Thoroughbred Breeders Australia chief executive Peter McGauran noted: “The code imposes a number of specific obligations on agents in regard to disclosure, as well as prohibiting payment of inducements or secret commissions. Importantly, however, the code incorporates sweeping provisions under which agents are held to the highest ethical & professional standards of their professions. We are confident that every potential wrong-doing is covered by the code, which has been 2 years in the drafting.” The major features of the new code are:
- No agent may act in an unethical, dishonest or disreputable manner & must act at all times in the interests of their client to the exclusion of all other interests including their own.
- An agent must obtain from their client a written form accurately recording the terms of engagement.
- An agent must disclose to their client any payment or commission they receive from any other person.
- An agent must not offer any secret commission or payment to another agent which is not disclosed to the prospective buyer or that is intended to induce an agent to act otherwise than in the best interests of their client.
- An agent must not make any false or misleading statement nor engage in any conduct intended to falsely inflate the price of bloodstock in respect of which they are acting.
- An agent must not purchase or acquire any interest in bloodstock in respect of which they are acting as an agent for a seller.
- A seller who has an ownership interest in bloodstock being offered for sale must not make any statement concerning the bloodstock which is false or misleading.
- A seller who has an ownership interest in bloodstock being offered for sale must accurately disclose the details of such ownership to the company conducting the sale.
- A seller must consent to those details being provided on a confidential basis to registered buyers who have a bona fide interest in purchasing the horse.