The rules regarding syndicates are much more complex with the changes bought about by the new ASIC class orders, Corporations Act amendments and the Financial Services Reform Act.
If you want to discuss syndicates with an expert in this now complex area I can suggest Michael Hodgson from Abbott Tout. He charges $500 per hour but its worth the cost as you want to ensure you are not conducting a managed investment scheme for ASIC. The old under 20 rule is no longer the only requirement. If you start promoting the syndicate to non sophisticated investors, outside family members or even plan on doing more than one syndicate you can be in breach of the ASIC class orders. All it takes is one unhappy syndicate member to complain to ASIC and you could have a legal challenge on your hands.
Get some good professional advice from a lawyer versed in syndicates. A lot of accountants think the old rules still apply and ASIC is currently closing down a lot of unregulated syndicates and pressing heavy charges against those who operate them. Once such syndicate recently received fines of over $10M.
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