AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. Home Handbook Managing / / The Right to Vanish 19 May 2026 Last revised minutes 9 Reading time AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. minutes 9 Reading time 19 May 2026 Last revised AIS was created as a safety tool. But somewhere along the line, something changed. Today, an industry exists to collect, archive and monetise vessel location data. For commercial shipping, that raises few eyebrows. But large yachts are part-time floating homes often associated with identifiable individuals, families and children. Drawing on legislation, human rights judgments, and celebrity privacy cases, this article examines where maritime safety ends and perpetual surveillance begins. AIS was created for navigation safety, not global public tracking. Yacht location data may qualify as personal data under UK GDPR where a yacht is closely associated with an identifiable owner, family or crew. Publishing real-time yacht locations may lack a lawful GDPR basis. Human rights and privacy law increasingly protect individuals against location surveillance. Public figures retain privacy rights despite wealth, fame or media attention. Courts may eventually decide when maritime transparency becomes unlawful surveillance. Human rights and privacy law increasingly protect individuals against location surveillance. Public figures retain privacy rights despite wealth, fame or media attention. Courts may eventually decide when maritime transparency becomes unlawful surveillance. AIS was created for navigation safety, not global public tracking. Yacht location data may qualify as personal data under UK GDPR where a yacht is closely associated with an identifiable owner, family or crew. Publishing real-time yacht locations may lack a lawful GDPR basis. It’s said that while money shouts, wealth whispers. And there was a time when you could sail quietly away to enjoy secluded adventure. No online tracking. No voyeurs or bad actors following your movements in real time. That’s all gone. Today, modern superyachts glide across the oceans leaving an invisible digital trail like a tin can tied to a wedding car. Every movement, every anchorage, every discreet arrival is vacuumed up, republished and monetised by online AIS tracking platforms. You could, of course, pull the plug. Some do. But that’s not lawful and there may be insurance repercussions if switching off were to be a contributory factor in a collision. So, that aside, what rights do owners have to vanish? USEFUL KIT AIS was not designed as a global voyeurism product. It’s a navigational tool. All yachts of 300 gross tonnage or more and engaged on international voyages must be fitted with Class A AIS equipment (per Regulation 19 of Chapter V of SOLAS). It enhances safety and security. By broadcasting key information through short-range radio signals to nearby vessels, it supplements the picture produced by radar, so enhancing traffic awareness. Many of the problems common to radar, such as clutter, do not affect AIS. So it’s also used in search and rescue operations. So far, so sensible. A HARMLESS HOBBY? There’s a comforting assumption that if something is broadcast, it’s public and you’re entitled to hoover this information up, monetise it if you want, then post it online with complete moral serenity. After all, tracking aircraft, like trainspotting, is harmless enough. But AIS’s core purpose is nearby safety, not global stalking. Commercial ships exist to trade. Ferries exist to transport passengers. Tugs, dredgers and offshore support vessels exist to work. Superyachts, by contrast, exist for one purpose only: private leisure. They are not mere transport assets. They are floating private residences, often carrying owners, families, children, guests and crew in circumstances that are deeply personal and deliberately secluded. Where a vessel is commonly associated with an individual, then it becomes a proxy for that person. The location data is thereby also – crucially – personal data. ENTER GDPR The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU) to safeguard the personal data within the EU and the European Economic Area (EEA). The UK’s own version of GDPR was retained in domestic law post-Brexit by virtue of the Data Protection Act 2018 . And data in respect of an individual’s location is undoubtedly ‘personal data’. Article 4(1) of UK GDPR defines personal data as “ any information relating to … an identifiable natural person … who can be identified, directly or indirectly, in particular by reference to an identifier such as … location data ”. So AIS data can become personal data when there’s a sufficient link to a habitual individual user, or even a crewmember, because of, for example, credible media reports. It becomes pattern-of-life information which can be used to map the movements of individuals. LAWFUL BASIS Under Article 6 of UK GDPR, every single act of processing personal data (such as posting online) must have a lawful basis. You cannot simply decide that because information is technically available, you can do whatever you like with it. There are six lawful bases under Article 6(1): Consent : has the owner consented to having their real-time location posted and published? Obviously not. They have not been asked. They have not consented. Contract : is there a contract? Of course not. Legal Obligation : is there a law requiring the publishing of a private individual's real-time location? Nope. Vital Interests : is publication necessary to save a life? Another no. Public Task : is the person posting this data a public authority exercising a public function? Unless the poster is, say, the coastguard, then this basis doesn't apply. Legitimate Interest : is publication necessary for legitimate interests of the publisher or a third party? This is the publisher’s last chance saloon. What legitimate interest could be invoked for posting someone's real-time location? Maritime safety? The vessel is already broadcasting AIS for that purpose. Reposting online adds nothing. Curiosity? Entertainment? These are not ‘legitimate interests’ in the legal sense. And crucially, even where there is a legitimate interest, the balancing test must be passed. The data subject's rights are weighed in the scales. Real-time, continuous disclosure of a specific person's location is a highly significant privacy intrusion. The scales would need something very substantial on the other side to tip them the other way. FURTHER HURDLES Even if a lawful basis were somehow established, the processing would still need to comply with the data protection principles in Article 5 of UK GDPR. These include: Lawfulness, Fairness & Transparency : publishing someone's location without their knowledge is not transparent. Whether it is fair is highly context-dependent, but continuous real-time location disclosure is unlikely to pass muster. Purpose Limitation : data must be collected for specified, explicit and legitimate purposes, and not further processed in a manner incompatible with those purposes. AIS data is broadcast for maritime safety. Republishing it to reveal an individual's location for non-safety purposes is incompatible with that original purpose. The vessel owner did not switch on their AIS transponder so that strangers on the internet could track their movements. Storage Limitation : data should not be kept longer than necessary. If an archive of a person's historical movements is being maintained, this requires separate justification. Data Minimisation : only data adequate, relevant, and limited to what is necessary may be processed. Real-time, continuous, geographically precise location tracking of a specific individual is the opposite of minimisation. HUMAN RIGHTS The European Convention on Human Rights ( ECHR ) is an overriding international treaty, protecting human rights and fundamental freedoms in Europe. All member states of the Council of Europe, including the UK and EU countries, are bound by the ECHR. Under Article 8 of the ECHR, everyone’s private and family life must be respected. The European Court of Human Rights, which oversees compliance with the ECHR, has stated in Uzun v Germany that GPS surveillance would via GPS would amounted to an interference with someone’s private life, as protected by Article 8, unless safeguards were put in place and the surveillance was targeted, proportionate and justified by strong public interests (such as a serious criminal investigation in that case). In the subsequent Shimovolos v Russia judgment the Court confirmed that, “ Collection, through a GPS device attached to a person’s car, and storage of data concerning that person’s whereabouts and movements in the public sphere was also found to constitute an interference with private life ”. Admittedly, these cases concerned state surveillance rather than yacht websites. But the principle is unmistakable: location data is intrinsically sensitive. MISUSE OF PRIVATE INFORMATION The misuse of private information is also a distinct civil wrong, according to Google v Vidal-Hall , liability for which is determined on the basis of whether the claimant has an objective, reasonable expectation of privacy in respect of the data. Clearly, any yacht owner has just such an expectation. The victim doesn't have to rely on data protection law at all: they can go straight to court on the grounds that their reasonable expectation of privacy has been violated, with claimants receiving damages for the loss or diminution of the right to control their private information, independently of any distress caused. CELEBRITY PRIVACY But to what extent does placing oneself in the public spotlight erode the right to privacy? In Campbell v MGN supermodel Naomi Campbell successfully sued the Daily Mirror for publishing details of her treatment at a narcotics clinic. The court established that being a public figure means you must tolerate some additional scrutiny but that does not extend to unlimited surveillance of your private movements and personal life. The Campbell test is: Does the individual have a reasonable expectation of privacy? If he or she does, is that privacy interest outweighed by a competing interest, such as freedom of expression or public accountability? A famous superyacht owner, sailing on their own vessel, clearly expects privacy, it’s very hard to see how this could be outweighed by any competing interest. In the subsequent case of Murray v Big Pictures author JK Rowling was out walking with her infant son, when they were photographed and those images were published in the Sunday Express. The court held that the son had a reasonable expectation of privacy even when out and about in a public place. Here, the targeted surveillance of the son beforehand mattered enormously. AIS data which can be used to track an individual's real-time location is precisely this sort of targeted surveillance. UNLAWFUL INTERCEPTION Finally, there is also an overlooked technical issue lurking beneath the surface: interception law. In the United Kingdom, it is an imprisonable criminal offence, under section 48 of the Wireless Telegraphy Act 2006, to intercept without lawful authority a communication in the course of its transmission by means of a public telecommunication system - including VHF radio signals produced by AIS equipment. CONCLUSION So where does this leave us? AIS itself is not the villain. It is a sensible, important safety system:. The problem begins when information emitted for collision avoidance is scooped up, archived, enriched, monetised and republished to a global audience, transforming a navigational aid into a perpetual surveillance mechanism. The law distinguishes between availability and permissibility. Merely because data can be obtained does not mean it may lawfully be gathered and posted online. The courts have been consistent and clear: precise location data attached to identifiable individuals is inherently sensitive and deserving of protection. The argument that the information is already pubic doesn’t wash. By that logic, one might argue that because someone drives on public roads, their every journey may be catalogued indefinitely and provided to strangers. Courts have shown little enthusiasm for such reasoning. The seas remain vast. Solitude remains valuable. The question the courts may yet have to answer is surprisingly simple: when does maritime transparency stop being safety, and start becoming surveillance? Please contact us if you have any privacy concerns. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Going Dark Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Going Dark

So you have your team in place. In the case of a full custom yacht, you'll now have your design and specification to hand. And if it’s a semi-custom or series production yacht you’re going for, your team understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. It’s time to shortlist the builders. Home Handbook Building / / Engage a Builder 10 May 2023 Last revised minutes 3 Reading time So you have your team in place. In the case of a full custom yacht, you have your design and specification to hand. And if it’s a semi-custom or series production yacht you’re going for, your team understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. It’s time to shortlist the builders. minutes 3 Reading time 10 May 2023 Last revised So you have your team in place. In the case of a full custom yacht, you have your design and specification to hand. And if it’s a semi-custom or series production yacht you’re going for, your team understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. It’s time to shortlist the builders. The asking prices of yachts depend on builder pedigree and size, with Northern Europe, France, Italy, and Turkey being viewed as having higher pedigree. Builders often subcontract parts of builds to suppliers, so effective build agreements and project management are crucial. Whittle down the short-list of builders by checking their available build slots and assessing their insurances and financial stability. Visit the builder's facilities to evaluate their cleanliness, safety, and organization, as well as the quality of their craftsmen and office facilities. Assess the builder's management team for communication and receptiveness to new concepts, as well as their flexibility in equipment suppliers and subcontractors. Consider the builder's financial security and willingness to have the build agreement subject to English law and jurisdiction. Choose a builder based on factors beyond the lowest bid, such as personal impression and team performance. Builders often request a Letter of Intent (LOI) before reserving a build slot, which outlines the price, payment terms, design, specification, and delivery timeframe. Clarify which parts of the LOI are binding and split it into a binding and non-binding section if necessary. Negotiate the build agreement after securing the LOI, taking legal advice before agreeing to any terms. Consider the builder's financial security and willingness to have the build agreement subject to English law and jurisdiction. Choose a builder based on factors beyond the lowest bid, such as personal impression and team performance. Builders often request a Letter of Intent (LOI) before reserving a build slot, which outlines the price, payment terms, design, specification, and delivery timeframe. Clarify which parts of the LOI are binding and split it into a binding and non-binding section if necessary. Negotiate the build agreement after securing the LOI, taking legal advice before agreeing to any terms. The asking prices of yachts depend on builder pedigree and size, with Northern Europe, France, Italy, and Turkey being viewed as having higher pedigree. Builders often subcontract parts of builds to suppliers, so effective build agreements and project management are crucial. Whittle down the short-list of builders by checking their available build slots and assessing their insurances and financial stability. Visit the builder's facilities to evaluate their cleanliness, safety, and organization, as well as the quality of their craftsmen and office facilities. Assess the builder's management team for communication and receptiveness to new concepts, as well as their flexibility in equipment suppliers and subcontractors. As your broker will have told you – or as you’ll have worked out by browsing online listings – the asking prices of yachts are dependent on builder pedigree as well as size. Broadly, builders in Northern Europe tend to be viewed as having the highest pedigree, followed by France and Italy and then Turkey. But this is much about perception than anything else. The reality is that many parts of the builds are subcontracted to suppliers who can place teams into any yard you wish. What’s key is an effective build agreement and project management. The use of well-known exterior and interior designers can add kudos and value. You’ll soon establish where your project can built. ASSESS THE CANDIDATES The short-list can be whittled down by making inquiries and establishing at the outset which of these builders have build slots available which suit your time horizon. The next task is to establish that the builder has the correct insurances and place and a strong balance sheet. A build taken on which was too ambitious or priced too keenly can quickly turn a prestigious name into a financial basket case. Some information will be publicly available, or an NDA can be put in place to allow you to examine more sensitive details. You should obtain a credit reference if possible. Then you should visit the builder in person. Modern yacht-building facilities are clean, safe, well-lit and orderly. Owners’ teams should have excellent office facilities, and there should be secure areas where owner-supplied items are clearly marked and stored. The workers are well-paid and highly-skilled craftsmen and women. It is (or should be) a far cry from many commercial and military shipyards. By meeting the builder’s management team, you can get a feel for their communicativeness, and their receptiveness to any new concepts you have in mind. You also need to assess the degree to which they are wedded to certain equipment suppliers and subcontractors in case you're considering alternatives. The builder will need to provide the right financial security and be open to having the build agreement subject to English law and jurisdiction: if it came to it, would you really receive justice in the builder’s local courts? You may well choose the builder you liked the look of, or whose team impressed you, over the one which came in with the lowest bid. RESERVE A SLOT It’s common practice for builders to request a Letter of Intent (LOI) from a prospective buyer before they’ll reserve a build slot. This stage is half-way between an informal expression of interest and a build agreement. The term is often used, but parties can be at odds about what the LOI means in practice and, in particular, the extent to which it’s going to bind the parties. As with many contracts in the international maritime sphere, the uncontroversial default choice of law for LOIs is that of England. Insistence on local laws should ring alarm bells. Under English law, contracts must be certain. Agreements to agree, and to negotiate in good faith, are unenforceable as they’re uncertain. The LOI can, and should, set out the price and payment terms, the design and specification, and the delivery timeframe. You may also want the right of first refusal for any earlier slots which become available. Depending on how these are drafted, each of these elements may or may not be binding. Different builders may have different expectations, but there is no overall consensus on this. The parties need to be clear on which parts are binding, and may be helpful to split the LOI into a binding and non-binding section. The degree to which you obtain certainty, while still retaining the flexibility to change or cancel the slot, is a matter of negotiation. Money may or may not change hands. If you haven’t had the owning company incorporated, the builder may want the LOI to be in your name personally. Whether you accede to such request is, of course, up to you, but the LOI must then contain a right for you to assign your interest over to the company upon incorporation. Never agree to an LOI before taking legal advice. With the LOI in place, it’s time to negotiate the build agreement . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about The Build Agreement Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The Build Agreement

The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. Home Handbook Managing / / Going Dark 28 November 2022 Last revised minutes 4 Reading time The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. minutes 4 Reading time 28 November 2022 Last revised The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS enhances safety and security in various ways. By plotting positional information provided by nearby vessels, it supplements the picture produced by radar, so enhancing traffic situation awareness. Many of the problems common to radar, such as clutter, target swap as ships pass close by and target loss following a fast manoeuvre, do not affect AIS. AIS is also used in search and rescue operations. Search And Rescue operators, on land, at sea and in the air, get more accurate information, especially on the position of survival craft. Further, because AIS is used to exchange data ship-to-ship and with shore-based facilities, it is useful in automating mandatory ship reporting to port authorities or vessel traffic service (VTS) stations. LEGAL REQUIREMENT By virtue of Regulation 19 of Chapter V of the International Convention for the Safety of Life at Sea (SOLAS) 1974, as amended, all ships of 300 gross tonnage or more and engaged on international voyages must be fitted with Class A AIS equipment. In law, all yachts are ships – and it is irrelevant whether registered as a private or commercial vessel. Class B devices may be carried on yachts which are not subject to the SOLAS requirements. Certain national laws take this further. For example, US Federal law requires commercial vessels of just 65 feet and over to be fitted with a Class A AIS device. HOW IT WORKS The system is contained within a small box, containing one very high frequency (VHF) radio transmitter, various VHF receivers and a central processing unit. To this is attached antennae, and interfaces for heading, speed devices and other shipborne sensors, plus interfaces to radar, Automatic Radar Plotting Aids (ARPA), Electronic Chart System/Electronic Chart Display and Information System (ECS/ECDIS) and Integrated Navigation Systems (INS). There’s also a display and keyboard to input and retrieve data. The AIS can be connected either to an additional dedicated AIS display unit, possibly one with a large graphic display, or as an input to existing navigational system devices such as a radar display, ECS, ECDIS, or INS. INFORMATION SHARED The AIS information is transmitted continuously by a ship, and includes the following three types: Static information, which is entered into the AIS on installation and need only be changed if the ship changes its name, Maritime Mobile Service Identity (MMSI), location of the electronic position fixing system (EPFS) antenna, or undergoes a major conversion from one ship type to another; Dynamic information, which, apart from navigational status information, is automatically updated from the ship sensors connected to AIS; and Voyage-related information, some of which such as destination and estimated time of arrival (ETA) will need to be entered manually at the start of the voyage and kept up to date as necessary. INCOMPLETE PICTURE AIS doesn’t always give the complete picture, and – as with any navigational aid – should only be used by itself – especially for collision-avoidance. It doesn’t take the place of radar target-tracking. The officer of the watch (OOW) should always be aware that other ships, in particular smaller leisure craft, fishing boats and warships might not be fitted with AIS. The OOW should always be aware that AIS fitted on other ships as a mandatory carriage requirement might, under certain circumstances, be switched off on the master's professional judgement. SWITCHING OFF Details of yachts whose AIS is switched on maybe accessed by anyone, anywhere, simply by looking at MarineTraffic , VesselFinder or any of the other myriad of similar websites. Not all owners will be happy about this. According to the International Maritime Organisation’s Resolution A.1106(29) of 14 December 2015, entitled Revised Guidelines for The Onboard Operational Use of Shipborne Automatic Identification Systems (AIS): AIS should always be in operation when ships are underway or at anchor. If the master believes that the continual operation of AIS might compromise the safety or security of his/her ship or where security incidents are imminent, the AIS may be switched off. Unless it would further compromise the safety or security, if the ship is operating in a mandatory ship reporting system, the master should report this action and the reason for doing so to the competent authority. Actions of this nature should always be recorded in the ship's logbook together with the reason for doing so. The master should however restart the AIS as soon as the source of danger has disappeared. If the AIS is shut down, static data and voyage-related information remains stored. Restart is done by switching on the power to the AIS unit. Ship's own data will be transmitted after a two-minute initialization period. In ports AIS operation should be in accordance with port requirements. CONSEQUENCES Port state authorities will expect AIS to be operational, and may impose penalties for this not being the case – especially where there is a collision which AIS may have helped to avoid. Keep in mind, too, that non-compliance with more stringent local regulations will be punished . Even in international waters, where a yacht goes dark other than allowed by Resolution A.1106(29), while this may not be noticed by the flag state authority, if there’s a collision then insurance underwriters could claim that, without this important navigational aid working, the vessel was, in law, unseaworthy, and they are entitled to refuse payment. But going dark may not be intentional. Interference, weak radio signals and patchy satellite reception can all compromise AIS data exchange. Distinguishing intentional from unintentional signal drop-outs is difficult but not impossible. The frequency and regularity of drop-outs prior to a full blackout may be indicative. And the reason may not be malevolent. It is known, for example, that in certain parts of the world fishing vessels switch off AIS in order not to reveal productive catch areas to competitors. CONCLUSION Whether we, as owners, like it or not, AIS is governed by international convention – and it’s here to stay. If there are legitimate concerns then going dark may be permissible, but it’s as well to discuss this with the captain and insurance underwriter well in advance of a transit through waters in which it may be prudent or desirable. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about State Yachts Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about State Yachts

If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Home Handbook White Papers / / Blue is the New Green Whether or not you are persuaded about the underlying causes of global temperature rises, a critical mass of democratically-elected leaders are now convinced. Protests no longer take the form of marches and placard-waving. Increasingly, activists are taking direct action. Their websites and image-curation are becoming more slick. They have an increasing grasp of public relations and social media. For now, the campaigns are self-defeating. Their disruption alienates the wider public as traffic jams build, meetings are missed and emergency services disrupted. But, increasingly, protests have started to target symbols of conspicuous consumption, such a ‘luxury’ car dealerships. And why stop at cars? Why not business jets? Why not… ‘superyachts’? At least the general public won’t be inconvenienced. And the messages can be conflated with broader political messages as well. It's beginning to happen. The blockading of general aviation terminals is becoming more commonplace. Then there was a protest at Port Vauban, Antibes, followed by one at the Superyacht Forum in Amsterdam. Massive nearby commercial airports and ports are being ignored. And while the underlying data used in academic papers owes is, to say the least, paper-thin - see our white paper Damn Lies & Statistics - the trajectory of this movement is clear. SHORT-SIGHTEDNESS In the case of yachts, this fury is short-sighted. The more time one spends afloat, the more one is aware of the amount of pollution entering the sea and the food chain – especially in the form of plastics. Not only do they bear witness first-hand, the owners of large yachts are better placed than anyone to actually address the issues beyond making changes to their own habits. They are likely to own companies which can enforce rapid behavioural change on a massive scale. Or they may own media outlets which band the drum of change. Or they may know politicians who can enact change. It is impossible not to be moved by the beauty of the marine environment, or outraged at seeing it compromised. Owners are in the position to act across a spectrum of environmental issues. NIGHTMARE SCENARIO Far-fetched today, but picture a possible scene a few years from now. A resolute Greta Thunberg, her outlook still binary and adolescent, implores her social media followers to flock to the Mediterranean – to picket ports en masse. WhatsApp groups coordinate the protests. Social media livestreams go viral. High-profile celebrity charterers cancel their summer bookings for fear of being “cancelled” themselves. The French, Italian and Spanish governments cave in to a vocal minority and introduce punitive taxes in berths and bunkers. Youngsters are discouraged from training for a role working on yachts. The costs of ownership spiral, and the assets themselves devalue alarmingly. Even financiers and insurers begin to withdraw from the market for fear of a popular backlash and a corresponding commercial impact on other business lines. TESTBEDS FOR CHANGE We have seen various new low and no-carbon yacht propulsion technologies being proposed in recent years. The 3D renderings are impressive and the press releases compelling. But this is cutting little ice with the campaigners, who just claim that this is “greenwashing”. It is incumbent on everyone within the yachting industry to urge environmental campaigners to see the broader picture of maritime transport. According to the Organisation for Economic Co-operation and Development (OECD), around 90% of traded goods are carried by sea . Yet shipping is a naturally conservative business: investments are large and the returns uncertain. The last thing trading ship owners want to do is to dabble in unproven green technology – unless obliged to by law. Any why are lawmakers going to change the law if the no technology hasn’t been proven on a smaller scale? PAST MISTAKES The yachting industry has, it must be said, singularly failed to portray the correct message to the wider society. We have worked project to project, season to season, sale to sale. Most information put out has been about yachts’ specification and features. It’s been about the wow factor – about one-upmanship, where bigger is better and consumption is king. Aside from all exciting new research going on, there are dozens of environmental and other philanthropic initiatives quietly being undertaken by owners. Yet the wider public knows nothing about this. SHORT-TERM STRATEGY Doing nothing is not an option. Carbon neutral schemes for yachts have been around since the mid 2000s. Taking up such schemes is – quite literally – the least we, as owners, can do. We also need to engage with the general media, and help them understand that, in terms of technological development, yachting is to shipping what haute couture is to everyday fashion. The wonderful work of organisations such as SeaKeepers needs to be known about far more widely – and more owners need to involve themselves. Ports and marinas also need to take advice and make preparations to ensure that, in so far as the law allows, any protests which prevent crew or suppliers going about their daily business are shut down as rapidly as possible before these patterns of behaviour become entrenched and emulated. LONG-TERM STRATEGY In the long term, those making bold claims with regard to truly viable carbon-neutral power sources need to make the investment necessary to bring these project to fruition. Aside from the tech, the refuelling infrastructure and regulatory framework must be developed. And insurance underwriters need to be onboard. For too long, owners have failed to act coherently in the face of a growing threat to our cherished liberties and way of life. It’s time to make blue the new green. Return to top Thank you to all our Members who provided perspectives for this white paper. If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. 21 November 2022 Last revised minutes 4 Reading time minutes 4 Reading time 21 November 2022 Last revised If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Recent years have seen an increase in protests and direct action by climate activists. They are targeting symbols of conspicuous consumption, including luxury car dealerships and large yachts. However, this fury against yachts is short-sighted. We, the owners, have a unique position to address environmental issues. We can help to enforce behavioral change through our companies and media outlets. The yachting industry needs to portray a different message to the wider society, highlighting our environmental and philanthropic initiatives. Taking up carbon neutral schemes is the least we can do. We should engage with the media to showcase technological developments and initiatives like SeaKeepers. Ports and marinas should prepare to handle protests swiftly to prevent disruption. In the long term, investment is needed in viable carbon-neutral power sources, refueling infrastructure, and regulatory frameworks. We must act coherently to protect our liberties and way of life. You can also read about Damn Lies & Statistics Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Damn Lies & Statistics Questions or comments? Please contact us

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 88 m Length Thompson Yachts Builder 2010 Build year 1502 Gross tonnage Malta Registry Particulars Representation

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 32 m Length Thompson Yachts Builder 2018 Build year 347 Gross tonnage United Kingdom Registry Particulars Token

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 37 m Length Finest Craft Builder 2011 Build year 156 Gross tonnage Cayman Islands Registry Particulars Type

It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Home Handbook White Papers / / A Flood Not a Trickle By far the majority of large, permanently-crewed yachts in existence today have only been launched since 2000. They’re new, and their positive impact is poorly understood by the general public, pressure groups and authorities alike. Yachts are increasingly becoming the targets of conflated environmental and political protests. As well as causing inconvenience in the short term, politicians may, in the long term be more reluctant to allow more marina developments, for example. After all, a small numbers of owners can only wield a small number of votes. It’s clear that yachting’s positive impact is woefully underestimated and misunderstood. Being confrontational will be counterproductive. As owners, we don’t want yachts to be on the political agenda. They exist, after all, for quiet enjoyment. But it’s as well to be prepared, with facts and figures at the ready, to respond to false accusations. And we may need to educate stakeholders and agitators quietly behind the scenes. PORTALS FOR THE REDISTRIBUTION OF WEALTH The most fundamental error is to consider a yacht purely as an asset – rather than a place of employment and worker accommodation. They are communities of individuals, most of whom are very well paid, and many of them are also entrusted to spend significant amounts of their employer’s hard-earned money. Whatever one’s views on the technical efficacy of trickle-down economics as part of a macroeconomic strategy, the boost to coastal economies is difficult to ignore. And this isn’t money being paid to an élite of lawyers and investment managers: it’s being paid directly into the accounts of waterside retailers and suppliers. Who, in turn, buy stock, employ staff and pay tax, leading to a significant quasi-Keynesian multiplier effect. BUYERS ALREADY PAY A PREMIUM Yachts are easy targets, because they are perceived – rightly – as being luxurious. But luxury isn’t just about opulence. Luxury is the combination of desirability and scarcity. Taking this to an extreme to illustrate the point, consider an expensive 50 year-old single malt Scotch whiskey. It’s matured in white oak barrels which – very slowly – allow some of the liquid to evaporate. There’s less and less of it as the years pass. So if this is what your heart desires you’ll pay more for it. The whiskey may or may not be any better than a 10 year-old dram, but it’s subjectively more desirable and objectively much scarcer. A yacht’s component parts are made in small numbers and/to an unusual specification. Producing them can be risky and unattractive for suppliers so they will demand higher prices. And precious few yards have the experience or equipment to craft the vessels themselves. All of this means that buyers pay significant premiums for yachts. As Mark Twain put it in The Adventures of Tom Sawyer (1876): " Tom … had discovered a great law of human action, without knowing it – namely, that in order to make a man or a boy covet a thing, it is only necessary to make the thing difficult to attain. " MODEST CREW BACKGROUNDS Long gone are the days when crewmembers came from privileged backgrounds – perhaps the children of the owner’s friends, or just sporty types whose leisure and social lives centred around prestigious yacht clubs. Like owners today, crew come from a wide variety of backgrounds – maybe having grown up in workaday towns situated far from the sea. They also come from all over the world, and must adapt quickly to a life afloat. The Owners Club is actively looking into ways to widen further the appeal of a career working on yachts – helping to make the industry as professional and meritocratic as possible. STATE-OWNED HARBOURS Mooring fees – together with harbour dues and associated services costs – form a significant outgoing for many yachts. While most marinas operate on a concession basis, it is usually the government or local municipal authority which owns the facility, and to whom the operator pays significant sums. These boost local coffers which are used to pay for vital local services which the whole community benefit from. REDUCING DEMAND FOR PROPERTY Recent decades have seen demand for property rise steeply. And as, in the most part, they stopped making land years ago, prices have risen accordingly. Starting in European capitals, a ripple effect then affects all parts of the relevant country. The result is property which is too expensive for most first-time buyers. They end up without a physical stake in society. Their lives are more transient, less settled and less secure. At the top of the property-owning tree, the world’s wealthiest can own multiple residences, each of which is perhaps only occupied for part of the year. Reducing a property portfolio in favour of a yacht purchase reduces demand at the highest end of the market, which should – eventually – reduce inflationary pressures at the bottom. Not by much, one suspects, but every little helps. HIGHLIGHTING MARINE POLLUTION The more time one spends afloat, the more one is aware of the amount of pollution entering the sea and the food chain – especially in the form of plastics. The owners of large yachts are better placed than anyone to actually address the issues beyond making changes to their own habits. They are likely to own companies which can introduce behavioural changes on a massive scale. Or they may own media outlets which bang the drum of change. Or they may know politicians who can enact change. It is impossible not to be moved by the beauty of the marine environment, or outraged at seeing it compromised. Owners are in the position to act. YACHTS INSPIRE SOCIETY French philosopher Roland Barthes wrote in Mythologies (1957): “ I think that cars today are almost the exact equivalent of the great Gothic cathedrals; I mean the supreme creation of an era, conceived with passion by unknown artists, and consumed in image if not in usage by a whole population which appropriates them as a purely magical object. ” In today’s context, this description applies to yachts far more than cars. And such sentiment is nothing new. Economist and key Enlightenment figure Adam Smith opined in his 1759 book The Theory of Moral Sentiments : “ The pleasures of wealth and greatness … strike the imagination as something grand and beautiful and noble, of which the attainment is well worth all the toil and anxiety which we are so apt to bestow upon it .” And so it is that, by symbolising wealth and success, yachts serve to inspire entrepreneurs to redouble their efforts. They encourage everyone inclined to do so, to work hard, take risks and use their imaginations. OWNERS INSPIRE CREWMEMBERS Owners’ energy, work ethic and meritocratic outlook often rubs off on the crewmembers who work for them. As crew usually do not have to pay income tax, and have little in the way of daily outgoings, when the time comes for them to come ashore they often do so with sufficient capital set aside to fund a new business. Many such enterprises will be related to yachting, but some will have nothing to do with their previous seagoing careers. Either way, yet more of the owners’ capital will be injected into economies far and wide. CONCLUSION Since the detention of certain Russian-owned yachts in early 2022, it looks at last as if large yachts can be rehabilitated from being seen in the popular imagination as icons of oligarchy to that which they were in previous times: symbols of success and the rewards for hard work and entrepreneurial élan. The possibility of future minority kickback shouldn’t be ignored. The benefits of yacht ownership are manifold for society generally. It is incumbent us owners to ensure, by supporting the Club and its aims, that all stakeholders understand the scope and extent of such benefits. The good news will be developed and deployed as needed. Other than that, let’s just get on enjoying the fruits of our labours and investments. To quote Eleanor Roosevelt: “ The purpose of life is to live it, to taste experience to the utmost, to reach out eagerly and without fear, for newer and richer experience .” Return to top Thank you to all our Members who provided perspectives for this white paper. It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. 15 November 2022 Last revised minutes 6 Reading time minutes 6 Reading time 15 November 2022 Last revised It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Large, permanently-crewed yachts face misconceptions and challenges related to their environmental impact and public perception. It is important for us, as owners, to understand and communicate the positive aspects of yachting to counter this. Yachts are not just assets; they are floating communities, providing employment and contributing massively to local economies. Crewing provides employment for indivuals from all backgrounds. Yacht purchases can also reduce demand for expensive property and inspire society as symbols of success. We are in a position to drive environmental change through our businesses. Yachts can also inspire crewmembers to pursue entrepreneurial endeavors. Ownership should be seen as a positive contribution to society, and we have a responsibility to promote and educate others about its benefits. You can also read about Blue is the New Green Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Blue is the New Green Questions or comments? Please contact us

Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Home Handbook Building / / Build Your Team 10 May 2023 Last revised minutes 4 Reading time Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. minutes 4 Reading time 10 May 2023 Last revised Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. As with the counterparts building trading and passenger vessels, yacht builders tend to be conservative in their outlook. Why change what’s worked before? They’re also in business to make money and will look to save costs where they can – in particular by interpreting poorly-drafted build agreements to suit themselves. To a certain extent, builders’ yards are, in reality, pieces of waterside real estate where a multitude of suppliers and subcontractors come together to create the finished article. So putting the right team in place is a vital first step, whose members will advise, negotiate and integrate the efforts and wares of countless third parties. And the more exceptional the project, the more exceptional your team needs to be. All the participants need to be involved right from the start and an excellent working relationship must be built up and maintained. The smaller the project, the greater the scope for individuals to combine roles, especially when it comes to the vessel’s design. KEY TEAM MEMBERS Having decided on how and where they wish to use their yacht, a trusted broker is the best starting point for some Members. Trusted is the key word here. Brokers usually work on commission. Are they looking to build a relationship which could last many happy years, or are they just looking to complete the next deal? Good brokers will have excellent industry knowledge and will add real value. They are sounding boards for ideas, and arbiters of practicality and good taste: the latter two elements being essential in maintaining resale value. The next team members to have on board are the exterior and interior designers, plus a naval architect where a custom yacht is envisaged, and a project manager. Designers produce designs, not technical solutions. Even the most accomplished designers won’t know exactly how workable their designs are, and architects don’t always have an eye for design. So a project manager will also be needed to coordinate all their efforts, and – diplomatically – seek compromises here and there. The project manager should have recent seagoing experience, as captain or engineer, on a vessel of similar type and size. Everyone in the team – you included – need honest feedback on what is and isn’t going to work. Because yachts are sources of liability as well as being assets, and to provide privacy and make accounting easier, yachts are nearly always owned through companies. Trusts can provide an additional layer of secrecy, but keep in mind that obtaining justice can be challenging in some far-flung jurisdictions should your expectations not be met. DON’T ECONOMISE Costs can be kept down by using a proven hull design. Many builders offer semi-custom yachts, where you’ll be making mostly aesthetic choices. If you want to stand out from the crowd, commercial and even military designs can be repurposed to make striking yachts. You need to be clear on who owns the intellectual property and that you have the right to use such designs. Some team roles can be taken on by the same individual or company. Exterior and interior design can be carried out by the same person – arguably leading to more harmonious aesthetics. But trying to save costs by omitting any of the core technical skills sets can have significant adverse effects. Oversights at this first stage can require expensive modifications later, causing lengthy delays. Everyone’s remit must be clearly defined and dovetailed, with strict timescales baked-in to their service contracts. Engaging a good lawyer, with build experience, is crucial here. DESIGN ESSENTIALS A yacht’s design will be determined, in part, by the minimum technical standards dictated by the Flag State , which in turn may require your yacht to be built in compliance with classification society Rules. These are based on internationally agreed-to standards, which must be adhered to if your yacht is going to ever to sail anywhere, and without which you will find it near impossible to insure the vessel. They vary according to length, internal volume and use. But such standards do not generally cover some aspects, such as preventive maintenance, which, over time, will help support the vessel’s condition and resale value. Remove the panels of any yacht and you’ll see an array of pipes, wires and items of equipment. If it’s too difficult or time-consuming to reach such items, they can be overlooked and, eventually, fail. The result is not just you and your guests being inconvenienced. Some repairs can be disproportionately expensive, and in extreme cases this can lead to your yacht not being accepted by a buyer when it’s time to sell. With regards aesthetics, most buyers are reasonably conservative. Avant garde designs are going to look newer for longer, and this will help to maintain their value. But when futuristic tips into plain weird the resale market shrinks rapidly and cost of ownership skyrockets. THE END RESULT Playwright George Bernard Shaw once quipped that reasonable people adapt themselves to the world, while unreasonable people adapt the world to themselves – hence progress depends on unreasonable people. Challenging the innate conservativeness of builders and regulatory authorities requires an experienced, imaginative and practical team. In the case of a full custom yacht, the end result of this exciting pre-build stage should be a design and specification you’re happy with, which is ready to be put out to tender with shortlisted builders, and a team ready to oversee the build. If a semi-custom or series production yacht is your preference, the result is a team which understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. With your team in place, it's time to chose a Flag State , and possibly a classification society , before engaging a builder . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Choose a Flag Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Choose a Flag

Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as a yacht owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. Home Handbook Insuring / / Staying Covered 10 May 2023 Last revised minutes 6 Reading time Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. minutes 6 Reading time 10 May 2023 Last revised Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open. Warranties are requirements that must be fulfilled by the policyholder to manage risk in insurance situations. Breach of warranty no longer automatically avoids all liability for underwriters since 2016. Underwriters remain liable for losses occurring after a breach of warranty if it can be remedied. If a loss occurs while the insured is in breach of warranty and the breach increases the risk, underwriters can deny liability. Breach of warranty regarding past facts may permanently suspend the underwriter's liability. Identifying warranties in a policy is crucial as they can be expressed or implied by law. Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc. The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht. Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims. Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations. Identifying warranties in a policy is crucial as they can be expressed or implied by law. Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc. The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht. Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims. Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations. Warranties are requirements that must be fulfilled by the policyholder to manage risk in insurance situations. Breach of warranty no longer automatically avoids all liability for underwriters since 2016. Underwriters remain liable for losses occurring after a breach of warranty if it can be remedied. If a loss occurs while the insured is in breach of warranty and the breach increases the risk, underwriters can deny liability. Breach of warranty regarding past facts may permanently suspend the underwriter's liability. Warranties serve to manage risk in various situations. They are requirements that need to be fulfilled by the policyholder. Warranties can be promissory, where the policyholder commits to a specific action or condition, or they can affirm or deny the existence of certain facts. Simply labelling a term as a warranty is insufficient, and the courts will consider the parties' intentions as well. They can be set out in the policy, or are implied by law – for example that the yacht will be used for lawful purposes, and operated in a lawful manner. BREACHES OF WARRANTY Since 2016, the old ‘basis of the contract’ clauses have been abolished. This means that underwriters cannot automatically avoid all liability if an express warranty is breached. The underwriter is liable for losses that occurred before a breach of warranty – as was always the case. But now, if the breach can be remedied, the underwriter remains liable for losses that happen after the breach has been fixed. If a loss occurs while the insured is in breach of a warranty, and if (crucially) the breach actually increased the risk of the actual loss, underwriters can still deny liability. Once (if) the insured rectifies the breach before the loss happens, the insured will again be back on-cover. After a breach of a warranty, the insured is still responsible for paying the premium. However, underwriters may be cautious when demanding payment to avoid waiving their right to rely on the breach. If the breach cannot be rectified, such as a breach of warranty regarding past facts (e.g., previous insurance claims or losses), the liability of the underwriter remains permanently suspended, and the insured will not have had any cover. RECOGNISING WARRANTIES So, with such serious consequences flowing from a breach of warranty, it is vital to be able to identify what warranties apply to a policy. The trouble is that warranties can be expressed in the contract, but not actually described as a warranty. More worryingly, they can be implied automatically by law, without even having to be agreed upon. Thankfully, express warranties must at least be included in the policy, or must at least be contained in some document referred to in the policy. So in the event of a claim it wouldn’t be good enough for an underwriter to simply dust-off some previously unknown ‘standard’ terms and refuse to pay. They are normally added as a deliberate and obvious fundamental stipulation of the contract. While implied warranties cannot be found in policies, they are easy to ascertain from the UK’s Marine Insurance Act 1906, and we’ll consider the more important ones below. While it may seem narrow-minded just to look at English law, it’s worth considering that most of the world’s risks are insured on the London market, and most countries model their own insurance laws on this Act – sometimes word for word. Whereas express warranties tend to be specific, implied warranties can be overarching and vague; so there can be overlaps between them. But an express warranty will not exclude an implied warranty on a related matter, unless directly inconsistent with it. EXPRESS WARRANTIES The two most widely used policy forms, the Institute Yacht Clauses and the American Yacht Form, contain warranties that the yacht is only to be used for ‘private pleasure purposes’ and is not to be chartered unless the underwriters specifically agree. The Institute Yacht Clauses also frame agreed navigation limits and the vessel’s maximum speed as warranties. Other popular forms often demand that when the yacht is underway a competent person must be on board and in control of the vessel. In a 2006 English case, concerning a claim following a serious fire on board the motor yacht Newfoundland Explorer while she was laid up afloat in Fort Lauderdale, the court held that the phrase ‘warranted vessel fully crewed at all times’ meant that the owner had to keep at least one crew member on board the yacht 24 hours a day, subject to (i) emergencies rendering crew departure necessary, or (ii) necessary temporary departures for the purposes of performing crewing duties or related activities such as adjusting mooring lines. It wasn’t good enough to employ a captain who lived ashore 30 minutes away. History was repeated in 2008 with a fire on board another vessel, Resolute, whose crew lived nearby – and the court in that case came to the same conclusion. WARRANTY OF LEGALITY Arguably the most important warranty is not expressed, but implied. Under the UK’s Marine Insurance Act 1906 (and in the laws of many other nations) there is an implied warranty that: The ‘adventure’ (i.e. a charter or a period of use by the owner and/or crew) will be lawful; and The yacht will be used in a lawful manner – as far as the insured can control the matter. With regard to legality of the adventure, at one end of the spectrum a yacht will clearly not be covered where the owner uses it for smuggling. Problems arise where the owner has no knowledge of doing anything illegal. Illegality may stem from local law as well as the yacht’s flag state law: a yacht chartering in without a local charter licence may not be covered. One would also want to ensure that the complex US security regulations are complied with when entering their waters. As for the second part – using the yacht in a lawful manner – this is only an issue as far the owner can control it. Compliance with safety-related regulations, such as the International Safety Management (ISM) Code or the Red Ensign Group Yacht Code Large Yacht will be a prerequisite to the underwriter paying related claims. So important is the warranty of legality that breaches of it cannot be waived by a kind underwriter, neither can the parties agree to overlook it. The warranty of legality has been used to avoid payment even where the crew failed to keep a proper watch – as this was in itself a breach of international collision regulations. In one landmark case, a yard was also denied cover where fire destroyed yachts in the yard, but where the yard itself did not conform to municipal byelaws. SEAWORTHINESS As surprising as it may seem, where a policy is for a period of time (as nearly all are) rather than for a specific passage, there is no implicit requirement in law for your yacht to be maintained in a seaworthy state. While some policies overcome this by expressly obliging the owner to maintain the yacht in a seaworthy condition, some standard forms don’t. Where there’s no stated obligation to do so, the underwriter will not be liable for any losses arising from unseaworthiness if the yacht actually puts to sea in that state with the knowledge of the insured. Where, as is normally the case, the legal owner (and therefore the named insured) is an offshore company, perhaps held in trust, identifying the individual(s) with such knowledge is difficult. The managers are an obvious starting point. Whilst it is for the underwriters to prove such knowledge, not for the insured to disprove, a review of the documents and correspondence held by the ISM Code ‘designated person’ could prove fatal to the chances of a pay-out. Being in a seaworthy condition means just that: falling short, but nevertheless making every effort, will not do. Even if a policy does not insist on seaworthiness, this is likely to be examined by the underwriter in any event after a claim, as any material non-disclosure would still provide a separate route for invalidating the claim. Many flag states, in particular within the Red Ensign group, have technical Codes of Practice that apply specifically to large yachts and those which are chartered. These provide objective measures of unseaworthiness, but, whilst helpful, should not be considered as providing a complete description of what constitutes a seaworthy yacht. SENSIBLE PRECAUTIONS If you’re chartering your yacht out, underwriters may insist on the use of a charter agreement that has been specifically approved by them, or is in a standard industry format, such as that published by MYBA . Likewise, if you’re going to race your sailing yacht, you may net to provide advance notification. However you use your yacht, be sure to get written confirmation of the ongoing information needed by underwriters – and provide this clearly, verifiable and in good time. It's also vital to check that your yacht is operating in accordance with flag and port state laws, and that you have the paperwork to provide this. Check, also, that your crew have the qualifications they claim they have: there are various third parties which provide this standalone service. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Making a Claim Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Making a Claim

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 59 m Length DMS & Co Builder 2007 Build year 308 Gross tonnage Cayman Islands Registry Particulars Archetype

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 28 m Length Finest Craft Builder 2006 Build year 150 Gross tonnage Marshall Islands Registry Particulars Prototype

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 72 m Length Thompson Yachts Builder 1996 Build year 1020 Gross tonnage Cayman Islands Registry Particulars Instance

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 30 m Length Builder & Co Builder 2004 Build year 70 Gross tonnage Cayman Islands Registry Particulars Snapshot

The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. Home Handbook White Papers / / Damn Lies & Statistics Imagine the scene. It’s November 2022. You’re a high-ranking governmental delegate at the 27th United Nations Climate Change conference in Sharm el-Sheikh. You represent a Mediterranean nation, and answer directly to the Minister of State. Within broad pre-set limits, you have free reign to negotiate and agree to tabled proposals. Over your morning cappuccino at a harbourside café, you peruse a report prepared by a diligent civil servant. Incredibly, it seems as if ‘superyachts’ are responsible for more greenhouse gases even than private jets. Who knew? And there are tens of thousands of such jets around the world. Something must be done. The civil servant points to a report by Oxfam, a highly respect international NGO, entitled Carbon billionaires The investment emissions of the world’s richest people . It states: “ Another study drew on public records to estimate that in 2018 emissions from the private yachts, planes, helicopters and mansions of 20 billionaires generated on average about 8,194 tonnes of carbon dioxide (CO2e). ” FURTHER REINFORCEMENT Oxfam’s report credits an academic paper as its source: “ B. Barros and R. Wilk. (2021). The outsized carbon footprints of the super-rich ”. Ever diligent, your civil servant has already found this paper online. It’s by Professor Richard Wilk and PhD candidate Beatriz Barros, no less. They claim “ Among the many possessions of billionaires, large “superyachts” are by far the largest producers of greenhouse gases. Three-quarters of the billionaires in our sample owned a yacht with an average length of 276 feet (84 meters), and their average carbon equivalent emissions were 7,018 tons per year. ” Wow – these superyachts are huge, with a carbon footprint to match. You ask the civil servant how many billionaires there are in the world. She taps away on her laptop and replies that Forbes’ 36th Annual World’s Billionaires List: Facts And Figures 2022 states that there are now 2,668 billionaires in the world. Oh my goodness – if that’s the output from just 20, how much CO2 are 2,668 yachts going to produce? I mean, they must nearly all have one – right? But how respected is Barros & Wilk’s paper? The civil servant Googles. She finds a Financial Times article entitled Superyachts aim to go green – but at what cost? in which it’s says “ Research by anthropologists Beatriz Barros and Richard Wilk of Indiana University into the carbon footprints of the super-rich found that yachts contributed an outsized share of the carbon emissions of the billionaires who own them — far more than their private jets or mansions .” The FT. Well that’s that then. As politicians, we must act – and fast. We must tax these superyachts out of existence. You finish your cappuccino and head over to the conference venue with a purposeful stride. REALITY CHECK But dig a little deeper, and you’ll also find that Wilk & Barros’s sample comprised just twenty billionaires. That’s right. Twenty. They even admit that, “ This is not in any way a representative sample of billionaires. ” Indeed not. Moreover, their “average” yacht with a length of 84 metres is likely to have a gross tonnage of, say 2,500. In fact, the actual average gross tonnage of all 30+ metres yachts sold in 2021 was just 440 (source: SuperYacht Times, The State of Yachting 2022 ). As it was outside the scope of their studies, Wilk & Barros calculated fuel consumption using a 2018 paper by Luisa Menano de Figueiredo, The Yacht of 2030 – which looked, according to Wilk & Barros, at the cruising records of just ten yachts. Wilk & Barros do not explain their methodology. Had they looked more closely at de Figueiredo’s paper, in fact just eight yachts (not ten) were tracked, for a 90-day period, while in the Caribbean – as this was all the AIS data available. And de Figueiredo’s paper only concerned motor vessels – not sailing yachts. MORE NONSENSE Indeed, a misleading body of academic literature is starting to build. Respected academics Lynch, Long, Stretesky & Barrett, from the University of South Florida, Oklahoma State University, Northumbria University and Eastern Michigan University respectively stated in their 2019 academic paper Measuring the Ecological Impact of the Wealthy: Excessive Consumption, Ecological Disorganization, Green Crime, and Justice that “ Specifically, we draw attention to assessing aspects of ecological footprints of super yachts, super homes, luxury vehicles, and private jets. Taken together, the construction and use of these items in the United States alone is likely to create a CO2 footprint that exceeds those from entire nations. These results are not necessarily surprising but suggest that excessive consumption practices of the wealthy may need to be reinterpreted as criminal when they disrupt the normal regeneration and reproduction of ecosystems by generating excessive ecological disorganization. ” Strong stuff. Specifically, this paper states “ From available data, we estimated that an average (71 meter) SY uses about 107,000 gallons gasoline/year and produces 2.1 million pounds of carbon dioxide emissions annually .” As set out above, 71 metres is, of course, way above average. And specific data sources aren’t given – as one might expect. Instead, there’s a list of references at the end. The only one relating to yachts is given as “ Mathew, Jerin. 2015. “True Cost of Owning a Super Yacht.” International Business Times, May 15. Retrieved April 19, 2019 (http://www.ibtimes.co.uk/true-cost-owning-super-yacht-1498302). ” This is a short report publicising a fun, marketing infographic produced by an insurance company. That infographic states that a 71-metre yacht will consume (exactly) 500 litres of diesel per hour, and the owner will spend precisely $400,000 on fuel. Not a cent more and not a cent less. Etc. General sources are listed at the bottom of the infographic, including Wikipedia and superyachtfan.com. A fun piece of marketing, but hardly data to form a foundation for erudite scholarship. More recently, a paper by Wang, Maidment, Boccolini and Wright, of Solent University in the UK, stated in their paper Life cycle assessment of alternative marine fuels for super yacht that, " There is little argument that, with an estimated average cost of US$275 million only the wealthiest individuals in the world can afford to purchase and operate a superyacht (Alicia, 2015). " An estimate which is inaccurate by a factor of, say, ten - at least - by which has been recycled without question or fact-checking. CONCLUSION It’s easy to dismiss such works as politically motivated tirades by joyless, virtue-signalling lecturers, with a jaundiced worldview. Yet the figures generated are taken at face-value not only by climate activists but by respected journalists. As owners, we need to collect accurate data, and present it clearly, alongside information about our many and various yacht-based climate research and conservation initiatives. Return to top Thank you to all our Members who provided perspectives for this white paper. The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. 23 November 2022 Last revised minutes 5 Reading time minutes 5 Reading time 23 November 2022 Last revised The media is full of data about the carbon footprint of large yachts. This data is taken as gospel by campaign groups. After all, the journalists refer to published, peer-reviewed academic papers. And these are clever people, right? Well it appears not. Or least their political jaundice means that they’re not fussed about fact-checking. If we’re not careful, policy makers may regard such research as correct and unchallengeable. There is a growing body of misleading academic literature on the ecological impact of luxury items. Yet the figures generated by such studies are taken at face value by climate activists and journalists. A recent academic report suggests that 'superyachts' emit more greenhouse gases than private jets, concluding with a call for action. The report, in turn, refers to a study by academics Barros and Wilk, claiming that superyachts owned by billionaires have significant carbon footprints. However, the sample size of the study is small and not representative, and the average yacht size mentioned is much larger than reality, and fuel consumption calculations are based on limited data. We, as onwers, need to be collecting accurate data and provide clear information about yacht-based climate impact. You can also read about Speaking Volumes Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Speaking Volumes Questions or comments? Please contact us

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 54 m Length Builder & Co Builder 2002 Build year 499 Gross tonnage Cayman Islands Registry Particulars Precursor

The Owners Club's Members' details are held in confidence by our General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Home About Discretion / / The Soul of Discretion THE LAST GREAT LUXURY Privacy Policy Privacy is the last great luxury of our times. Highly prized by owners, it’s usually a contributing factor in buying a yacht. In an age where data has become a commodity, Members are glad to know that our discretion is absolute. Members' details are held in confidence by the Club’s General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Some in the yachting industry can be fairly indiscrete. If we, as owners, are going to come together as a club, then we need to safeguard our privacy. This has been achieved. OWNER, 35M MY DISCRETION IS OUR DUTY Learn More Our General Secretary is an English lawyer, for whom discretion isn’t just a promise but a regulated professional requirement. Used to maintaining client confidentiality, he is a Partner at a leading international firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. The Club’s management company is registered with the United Kingdom Information Commissioner’s Office pursuant to the UK General Data Protection Regulation and the Data Protection Act 2018. By law, the data the Club holds must be held securely and protected against unlawful processing and accidental loss.

The Owners Club started with a chance meeting between two owners racing in the Superyacht Cup. They wondered if yacht owners, could speak with one voice, and share best practice, when buying, building, owning and selling. They also thought to pool their considerable buying power to negotiate discounts for insurance, finance and lawyers fees. Home About Genesis / / A Fresh Start COMMON SENSE FOR UNCOMMON WEALTH FAQs Why is it that, while we can innovate, build strong businesses and drive economies forward, our voice as yacht owners remains so quiet? Sure, our brokers, managers and captains have our backs, but they’ve got their hands full. Who’s there to take a high-level view of ownership? Who’s there to provide guidance so we’re not each taking advice and reinventing the wheel? Who’s drafting the agreements and documents we have to have in place? Shouldn’t we be working together? Yes. It’s common sense. I can’t believe we’re all taking advice on pretty much the same things – crew employment, taxes, etc. It’s great to see owners and their reps come together like this. CAPTAIN 72m MY FROM COMPETITION TO COOPERATION Contact Us It all started with a chance meeting between two owners. Sitting on the rail of a Superyacht Cup competitor, they wondered why yachts were subject to so much regulation. Protecting seafarers on large ships, many of the complex rules are arbitrary and inconsistent when applied to smaller vessels. Could this be put right? Yes, if only we, the owners, could speak with one voice. And if coming together, let's share best practice, rather than seek expensive advice at every turn. And why not pool our considerable buying power to negotiate discounts?

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp Central Agent 36 m Length Thompson Yachts Builder 2014 Build year 400 Gross tonnage Cayman Islands Registry Particulars Case Study

Our Members expect complete privacy. The Owners Club Privacy Policy establishes a fair and balanced framework which safeguards the privacy of superyacht owners and their representatives. Home / Privacy Privacy is Respect The Owners Club Privacy Policy establishes a fair and balanced framework to safeguard your privacy. Please take a moment to read this page. 1. INTRODUCTION 1.1. Welcome to The Owners Club’s privacy policy. 1.2. The Owners Club respects your privacy and is committed to protecting your personal data. This privacy policy will inform you as to how we look after your personal data when you visit our website (regardless of where you visit it from) and tell you about your privacy rights and how the law protects you. 1.3. This privacy policy is provided in a layered format so you can click through to the specific areas set out below. Please also use the Glossary to understand the meaning of some of the terms used in this privacy policy. 2. PURPOSE OF THIS PRIVACY POLICY 2.1. This privacy policy aims to give you information on how The Owners Club collects and processes your personal data through your use of this website, including any data you may provide through this website when you purchase a product or service. 2.2. This website is not intended for children and we do not knowingly collect data relating to children. 2.3. It is important that you read this privacy policy together with any other privacy policy or fair processing policy we may provide on specific occasions when we are collecting or processing personal data about you so that you are fully aware of how and why we are using your data. This privacy policy supplements other notices and privacy policies and is not intended to override them. 3. CONTROLLER 3.1. The Owners Club Limited is the controller and responsible for your personal data (collectively referred to as The Owners Club, “we”, “us” or “our” in this privacy policy). 3.2. We have appointed a data protection officer (DPO) who is responsible for overseeing questions in relation to this privacy policy. If you have any questions about this privacy policy, including any requests to exercise your legal rights, please contact the DPO using the details set out below. 4. CONTACT DETAILS 4.1. If you have any questions about this privacy policy or our privacy practices, please contact our DPO by email at info@theownersclub.org . 4.2. You have the right to make a complaint at any time to the Information Commissioner’s Office (ICO), the UK regulator for data protection issues (ico.org.uk). We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance. 5. CHANGES TO THE PRIVACY POLICY AND YOUR DUTY TO INFORM US OF CHANGES 5.1. We keep our privacy policy under regular review. This version was last updated on 1 November 2021. Historic versions can be obtained by contacting us. 5.2. It is important that the personal data we hold about you is accurate and current. Please keep us informed if your personal data changes during your relationship with us. 6. THIRD-PARTY LINKS 6.1. This website may include links to third-party websites, plug-ins and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control these third-party websites and are not responsible for their privacy statements. When you leave our website, we encourage you to read the privacy policy of every website you visit. 7. THE DATA WE COLLECT ABOUT YOU 7.1. Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data). 7.2. We may collect, use, store and transfer different kinds of personal data about you which we have grouped together as follows: 7.2.1. Identity Data includes first name, maiden name, last name, username or similar identifier, marital status, title, date of birth and gender. 7.2.2. Contact Data includes billing address, delivery address, email address and telephone numbers. 7.2.3. Financial Data includes bank account and payment card details. 7.2.4. Transaction Data includes details about payments to and from you and other details of products and services you have purchased from us. 7.2.5. Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and other technology on the devices you use to access this website. 7.2.6. Profile Data includes your username and password, purchases or orders made by you, your interests, preferences, feedback and survey responses. 7.2.7. Usage Data includes information about how you use our website, products and services. 7.2.8. Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences. 7.3. We also collect, use and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data could be derived from your personal data but is not considered personal data in law as this data will not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy policy. 7.4. We do not collect any Special Categories of Personal Data about you (this includes details about your race or ethnicity, religious or philosophical beliefs, sex life, sexual orientation, political opinions, trade union membership, information about your health, and genetic and biometric data). Nor do we collect any information about criminal convictions and offences. 7.5. Where we need to collect personal data by law, or under the terms of a contract we have with you, and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you (for example, to provide you with goods or services). In this case, we may have to cancel a product or service you have with us but we will notify you if this is the case at the time. 8. HOW IS YOUR PERSONAL DATA COLLECTED? 8.1. We use different methods to collect data from and about you including through: 8.1.1. Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise. This includes personal data you provide when you apply for our products or services, create an account on our website, subscribe to our service or publications, request marketing to be sent to you, enter a competition, promotion or survey, or give us feedback or contact us. 8.1.2. Automated technologies or interactions. As you interact with our website, we will automatically collect Technical Data about your equipment, browsing actions and patterns. We collect this personal data by using cookies, server logs and other similar technologies. We may also receive Technical Data about you if you visit other websites employing our cookies. 8.1.3. Third parties or publicly available sources. We will receive personal data about you from various third parties and public sources as set out: 8.1.3.1. Technical Data from the following parties: 8.1.3.2. analytics providers such as Google; 8.1.3.3. advertising networks; and 8.1.3.4. search information providers. 8.1.4. Contact, Financial and Transaction Data from providers of technical, payment and delivery services. 8.1.5. Identity and Contact Data from data brokers or aggregators. 8.1.6. Identity and Contact Data from publicly available sources. 9. HOW WE USE YOUR PERSONAL DATA 9.1. We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances: 9.2. Where we need to perform the contract we are about to enter into or have entered into with you. 9.3. Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests. 9.4. Where we need to comply with a legal obligation. 9.5. Generally, we do not rely on consent as a legal basis for processing your personal data although we will get your consent before sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us. 10. PURPOSES FOR WHICH WE WILL USE YOUR PERSONAL DATA 10.1. We have set out below, in a table format, a description of all the ways we plan to use your personal data, and which of the legal bases we rely on to do so. We have also identified what our legitimate interests are where appropriate. 10.2. Note that we may process your personal data for more than one lawful ground depending on the specific purpose for which we are using your data. Please contact us if you need details about the specific legal ground we are relying on to process your personal data where more than one ground has been set out in the table below: Purpose/ Activity To register you as a new customer To process and deliver your order including: Manage payments, fees and charges Collect and recover money owed to us To manage our relationship with you which will include: Notifying you about changes to our terms or privacy policy Asking you to leave a review or take a survey To enable you to partake in a prize draw, competition or complete a survey To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data) To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you To use data analytics to improve our website, products/services, marketing, customer relationships and experiences To make suggestions and recommendations to you about goods or services that may be of interest to you Type of data Identity Contact Identity Contact Financial Transaction Marketing and Communications Identity Contact Profile Marketing and Communications Identity Contact Profile Usage Marketing and Communications Identity Contact Technical Identity Contact Profile Usage Marketing and Communications Technical Technical Usage Identity Contact Technical Usage Profile Marketing and Communications Lawful basis for processing including basis of legitimate interest Performance of a contract with you Performance of a contract with you Necessary for our legitimate interests (to recover debts due to us) Performance of a contract with you Necessary to comply with a legal obligation Necessary for our legitimate interests (to keep our records updated and to study how customers use our products/services) Performance of a contract with you Necessary for our legitimate interests (to study how customers use our products/services, to develop them and grow our business) Necessary for our legitimate interests (for running our business, provision of administration and IT services, network security, to prevent fraud and in the context of a business reorganisation or group restructuring exercise) Necessary to comply with a legal obligation Necessary for our legitimate interests (to study how customers use our products/services, to develop them, to grow our business and to inform our marketing strategy) Necessary for our legitimate interests (to define types of customers for our products and services, to keep our website updated and relevant, to develop our business and to inform our marketing strategy) Necessary for our legitimate interests (to develop our products/services and grow our business) 11. MARKETING 11.1. We strive to provide you with choices regarding certain personal data uses, particularly around marketing and advertising. 12. PROMOTIONAL OFFERS FROM US 12.1. We may use your Identity, Contact, Technical, Usage and Profile Data to form a view on what we think you may want or need, or what may be of interest to you. This is how we decide which products, services and offers may be relevant for you (we call this marketing). 12.2. You will receive marketing communications from us if you have requested information from us or purchased goods or services from us and you have not opted out of receiving that marketing. 13. THIRD-PARTY MARKETING 13.1. We will get your express opt-in consent before we share your personal data with any third party for marketing purposes. 14. OPTING OUT 14.1. You can ask us or third parties to stop sending you marketing messages at any time by contacting us at any time by email. 14.2. Where you opt out of receiving these marketing messages, this will not apply to personal data provided to us as a result of a product/service purchase, warranty registration, product/service experience or other transactions. 15. COOKIES 15.1. You can set your browser to refuse all or some browser cookies, or to alert you when websites set or access cookies. If you disable or refuse cookies, please note that some parts of this website may become inaccessible or not function properly. 16. CHANGE OF PURPOSE 16.1. We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose. If you wish to get an explanation as to how the processing for the new purpose is compatible with the original purpose, please contact us. 16.2. If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so. 16.3. Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law. 17. DISCLOSURES OF YOUR PERSONAL DATA 17.1. We may share your personal data with third parties to whom we may choose to sell, transfer or merge parts of our business or our assets. Alternatively, we may seek to acquire other businesses or merge with them. If a change happens to our business, then the new owners may use your personal data in the same way as set out in this privacy policy. 17.2. We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions. 18. INTERNATIONAL TRANSFERS 18.1. Many of our external third parties are based outside the UK so their processing of your personal data will involve a transfer of data outside the UK. 18.2. Whenever we transfer your personal data out of the UK, we ensure a similar degree of protection is afforded to it by only transferring your personal data to countries that have been deemed to provide an adequate level of protection for personal data. 19. DATA SECURITY 19.1. We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality. 19.2. We have put in place procedures to deal with any suspected personal data breach and will notify you and any applicable regulator of a breach where we are legally required to do so. 20. HOW LONG WILL YOU USE MY PERSONAL DATA FOR? 20.1. We will only retain your personal data for as long as reasonably necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory, tax, accounting or reporting requirements. We may retain your personal data for a longer period in the event of a complaint or if we reasonably believe there is a prospect of litigation in respect to our relationship with you. 20.2. To determine the appropriate retention period for personal data, we consider the amount, nature and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal, regulatory, tax, accounting or other requirements. 20.3. We keep basic information about our customers (including Contact, Identity, Financial and Transaction Data) for six years after they cease being customers for tax and other purposes. 20.4. In some circumstances you can ask us to delete your data. 20.5. In some circumstances we will anonymise your personal data (so that it can no longer be associated with you) for research or statistical purposes, in which case we may use this information indefinitely without further notice to you. 21. YOUR LEGAL RIGHTS 21.1. Under certain circumstances, you have rights under data protection laws in relation to your personal data., including: 21.1.1. Request access to your personal data. 21.1.2. Request correction of your personal data. 21.1.3. Request erasure of your personal data. 21.1.4. Object to processing of your personal data. 21.1.5. Request restriction of processing your personal data. 21.1.6. Request transfer of your personal data. 21.1.7. Right to withdraw consent. 21.2. If you wish to exercise any of the rights set out above, please contact us. 22. NO FEE USUALLY REQUIRED 22.1. You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we could refuse to comply with your request in these circumstances. 23. WHAT WE MAY NEED FROM YOU 23.1. We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response. 24. TIME LIMIT TO RESPOND 24.1. We try to respond to all legitimate requests within one month. Occasionally it could take us longer than a month if your request is particularly complex or you have made a number of requests. In this case, we will notify you and keep you updated. 25. GLOSSARY 25.1. Legitimate Interest means the interest of our business in conducting and managing our business to enable us to give you the best service/product and the best and most secure experience. We make sure we consider and balance any potential impact on you (both positive and negative) and your rights before we process your personal data for our legitimate interests. We do not use your personal data for activities where our interests are overridden by the impact on you (unless we have your consent or are otherwise required or permitted to by law). You can obtain further information about how we assess our legitimate interests against any potential impact on you in respect of specific activities by contacting us. 25.2. Performance of Contract means processing your data where it is necessary for the performance of a contract to which you are a party or to take steps at your request before entering into such a contract. 25.3. Comply with a legal obligation means processing your personal data where it is necessary for compliance with a legal obligation that we are subject to. 26. YOUR LEGAL RIGHTS 26.1. You have the right to: 26.1.1. Request access to your personal data (commonly known as a “data subject access request”). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it. 26.1.2. Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us. 26.1.3. Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request. 26.1.4. Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms. 26.1.5. Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios: 26.1.5.1. If you want us to establish the data’s accuracy. 26.1.5.2. Where our use of the data is unlawful but you do not want us to erase it. 26.1.5.3. Where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims. 26.1.5.4. You have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it. 26.1.6. Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you. 26.1.7. Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to provide certain products or services to you. We will advise you if this is the case at the time you withdraw your consent. Contact Us The Owners Club Privacy Policy establishes a fair and balanced framework to safeguard your privacy. Please take a moment to read this page thoroughly. 1. INTRODUCTION 1.1. Welcome to The Owners Club’s privacy policy. 1.2. The Owners Club respects your privacy and is committed to protecting your personal data. This privacy policy will inform you as to how we look after your personal data when you visit our website (regardless of where you visit it from) and tell you about your privacy rights and how the law protects you. 1.3. This privacy policy is provided in a layered format so you can click through to the specific areas set out below. Please also use the Glossary to understand the meaning of some of the terms used in this privacy policy. 2. PURPOSE OF THIS PRIVACY POLICY 2.1. This privacy policy aims to give you information on how The Owners Club collects and processes your personal data through your use of this website, including any data you may provide through this website when you purchase a product or service. 2.2. This website is not intended for children and we do not knowingly collect data relating to children. 2.3. It is important that you read this privacy policy together with any other privacy policy or fair processing policy we may provide on specific occasions when we are collecting or processing personal data about you so that you are fully aware of how and why we are using your data. This privacy policy supplements other notices and privacy policies and is not intended to override them. 3. CONTROLLER 3.1. The Owners Club Limited is the controller and responsible for your personal data (collectively referred to as The Owners Club, “we”, “us” or “our” in this privacy policy). 3.2. We have appointed a data protection officer (DPO) who is responsible for overseeing questions in relation to this privacy policy. If you have any questions about this privacy policy, including any requests to exercise your legal rights, please contact the DPO using the details set out below. 4. CONTACT DETAILS 4.1. If you have any questions about this privacy policy or our privacy practices, please contact our DPO by email at gensec@theownersclub.org . 4.2. You have the right to make a complaint at any time to the Information Commissioner’s Office (ICO), the UK regulator for data protection issues (ico.org.uk). We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance. 5. CHANGES TO THE PRIVACY POLICY AND YOUR DUTY TO INFORM US OF CHANGES 5.1. We keep our privacy policy under regular review. This version was last updated on 1 November 2021. Historic versions can be obtained by contacting us. 5.2. It is important that the personal data we hold about you is accurate and current. Please keep us informed if your personal data changes during your relationship with us. 6. THIRD-PARTY LINKS 6.1. This website may include links to third-party websites, plug-ins and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control these third-party websites and are not responsible for their privacy statements. When you leave our website, we encourage you to read the privacy policy of every website you visit. 7. THE DATA WE COLLECT ABOUT YOU 7.1. Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data). 7.2. We may collect, use, store and transfer different kinds of personal data about you which we have grouped together as follows: 7.2.1. Identity Data includes first name, maiden name, last name, username or similar identifier, marital status, title, date of birth and gender. 7.2.2. Contact Data includes billing address, delivery address, email address and telephone numbers. 7.2.3. Financial Data includes bank account and payment card details. 7.2.4. Transaction Data includes details about payments to and from you and other details of products and services you have purchased from us. 7.2.5. Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and other technology on the devices you use to access this website. 7.2.6. Profile Data includes your username and password, purchases or orders made by you, your interests, preferences, feedback and survey responses. 7.2.7. Usage Data includes information about how you use our website, products and services. 7.2.8. Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences. 7.3. We also collect, use and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data could be derived from your personal data but is not considered personal data in law as this data will not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy policy. 7.4. We do not collect any Special Categories of Personal Data about you (this includes details about your race or ethnicity, religious or philosophical beliefs, sex life, sexual orientation, political opinions, trade union membership, information about your health, and genetic and biometric data). Nor do we collect any information about criminal convictions and offences. 7.5. Where we need to collect personal data by law, or under the terms of a contract we have with you, and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you (for example, to provide you with goods or services). In this case, we may have to cancel a product or service you have with us but we will notify you if this is the case at the time. 8. HOW IS YOUR PERSONAL DATA COLLECTED? 8.1. We use different methods to collect data from and about you including through: 8.1.1. Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise. This includes personal data you provide when you apply for our products or services, create an account on our website, subscribe to our service or publications, request marketing to be sent to you, enter a competition, promotion or survey, or give us feedback or contact us. 8.1.2. Automated technologies or interactions. As you interact with our website, we will automatically collect Technical Data about your equipment, browsing actions and patterns. We collect this personal data by using cookies, server logs and other similar technologies. We may also receive Technical Data about you if you visit other websites employing our cookies. 8.1.3. Third parties or publicly available sources. We will receive personal data about you from various third parties and public sources as set out: 8.1.3.1. Technical Data from the following parties: 8.1.3.2. analytics providers such as Google; 8.1.3.3. advertising networks; and 8.1.3.4. search information providers. 8.1.4. Contact, Financial and Transaction Data from providers of technical, payment and delivery services. 8.1.5. Identity and Contact Data from data brokers or aggregators. 8.1.6. Identity and Contact Data from publicly available sources. 9. HOW WE USE YOUR PERSONAL DATA 9.1. We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances: 9.2. Where we need to perform the contract we are about to enter into or have entered into with you. 9.3. Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests. 9.4. Where we need to comply with a legal obligation. 9.5. Generally, we do not rely on consent as a legal basis for processing your personal data although we will get your consent before sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us. 10. PURPOSES FOR WHICH WE WILL USE YOUR PERSONAL DATA 10.1. We have set out below, in a table format, a description of all the ways we plan to use your personal data, and which of the legal bases we rely on to do so. We have also identified what our legitimate interests are where appropriate. 10.2. Note that we may process your personal data for more than one lawful ground depending on the specific purpose for which we are using your data. Please contact us if you need details about the specific legal ground we are relying on to process your personal data where more than one ground has been set out in the table below: Purpose/Activity To register you as a new customer To process and deliver your order including: Manage payments, fees and charges Collect and recover money owed to us To manage our relationship with you which will include: Notifying you about changes to our terms or privacy policy Asking you to leave a review or take a survey To enable you to partake in a prize draw, competition or complete a survey To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data) To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you To use data analytics to improve our website, products/services, marketing, customer relationships and experiences To make suggestions and recommendations to you about goods or services that may be of interest to you Type of data Identity Contact Identity Contact Financial Transaction Marketing and Communications Identity Contact Profile Marketing and Communications Identity Contact Profile Usage Marketing and Communications Identity Contact Technical Identity Contact Profile Usage Marketing and Communications Technical Technical Usage Identity Contact Technical Usage Profile Marketing and Communications Lawful basis for processing including basis of legitimate interest Performance of a contract with you Performance of a contract with you Necessary for our legitimate interests (to recover debts due to us) Performance of a contract with you Necessary to comply with a legal obligation Necessary for our legitimate interests (to keep our records updated and to study how customers use our products/services) Performance of a contract with you Necessary for our legitimate interests (to study how customers use our products/services, to develop them and grow our business) Necessary for our legitimate interests (for running our business, provision of administration and IT services, network security, to prevent fraud and in the context of a business reorganisation or group restructuring exercise) Necessary to comply with a legal obligation Necessary for our legitimate interests (to study how customers use our products/services, to develop them, to grow our business and to inform our marketing strategy) Necessary for our legitimate interests (to define types of customers for our products and services, to keep our website updated and relevant, to develop our business and to inform our marketing strategy) Necessary for our legitimate interests (to develop our products/services and grow our business) 11. MARKETING 11.1. We strive to provide you with choices regarding certain personal data uses, particularly around marketing and advertising. 12. PROMOTIONAL OFFERS FROM US 12.1. We may use your Identity, Contact, Technical, Usage and Profile Data to form a view on what we think you may want or need, or what may be of interest to you. This is how we decide which products, services and offers may be relevant for you (we call this marketing). 12.2. You will receive marketing communications from us if you have requested information from us or purchased goods or services from us and you have not opted out of receiving that marketing. 13. THIRD-PARTY MARKETING 13.1. We will get your express opt-in consent before we share your personal data with any third party for marketing purposes. 14. OPTING OUT 14.1. You can ask us or third parties to stop sending you marketing messages at any time by contacting us at any time by email. 14.2. Where you opt out of receiving these marketing messages, this will not apply to personal data provided to us as a result of a product/service purchase, warranty registration, product/service experience or other transactions. 15. COOKIES 15.1. You can set your browser to refuse all or some browser cookies, or to alert you when websites set or access cookies. If you disable or refuse cookies, please note that some parts of this website may become inaccessible or not function properly. 16. CHANGE OF PURPOSE 16.1. We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose. If you wish to get an explanation as to how the processing for the new purpose is compatible with the original purpose, please contact us. 16.2. If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so. 16.3. Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law. 17. DISCLOSURES OF YOUR PERSONAL DATA 17.1. We may share your personal data with third parties to whom we may choose to sell, transfer or merge parts of our business or our assets. Alternatively, we may seek to acquire other businesses or merge with them. If a change happens to our business, then the new owners may use your personal data in the same way as set out in this privacy policy. 17.2. We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions. 18. INTERNATIONAL TRANSFERS 18.1. Many of our external third parties are based outside the UK so their processing of your personal data will involve a transfer of data outside the UK. 18.2. Whenever we transfer your personal data out of the UK, we ensure a similar degree of protection is afforded to it by only transferring your personal data to countries that have been deemed to provide an adequate level of protection for personal data. 19. DATA SECURITY 19.1. We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality. 19.2. We have put in place procedures to deal with any suspected personal data breach and will notify you and any applicable regulator of a breach where we are legally required to do so. 20. HOW LONG WILL YOU USE MY PERSONAL DATA FOR? 20.1. We will only retain your personal data for as long as reasonably necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory, tax, accounting or reporting requirements. We may retain your personal data for a longer period in the event of a complaint or if we reasonably believe there is a prospect of litigation in respect to our relationship with you. 20.2. To determine the appropriate retention period for personal data, we consider the amount, nature and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal, regulatory, tax, accounting or other requirements. 20.3. We keep basic information about our customers (including Contact, Identity, Financial and Transaction Data) for six years after they cease being customers for tax and other purposes. 20.4. In some circumstances you can ask us to delete your data. 20.5. In some circumstances we will anonymise your personal data (so that it can no longer be associated with you) for research or statistical purposes, in which case we may use this information indefinitely without further notice to you. 21. YOUR LEGAL RIGHTS 21.1. Under certain circumstances, you have rights under data protection laws in relation to your personal data., including: 21.1.1. Request access to your personal data. 21.1.2. Request correction of your personal data. 21.1.3. Request erasure of your personal data. 21.1.4. Object to processing of your personal data. 21.1.5. Request restriction of processing your personal data. 21.1.6. Request transfer of your personal data. 21.1.7. Right to withdraw consent. 21.2. If you wish to exercise any of the rights set out above, please contact us. 22. NO FEE USUALLY REQUIRED 22.1. You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we could refuse to comply with your request in these circumstances. 23. WHAT WE MAY NEED FROM YOU 23.1. We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response. 24. TIME LIMIT TO RESPOND 24.1. We try to respond to all legitimate requests within one month. Occasionally it could take us longer than a month if your request is particularly complex or you have made a number of requests. In this case, we will notify you and keep you updated. 25. GLOSSARY 25.1. Legitimate Interest means the interest of our business in conducting and managing our business to enable us to give you the best service/product and the best and most secure experience. We make sure we consider and balance any potential impact on you (both positive and negative) and your rights before we process your personal data for our legitimate interests. We do not use your personal data for activities where our interests are overridden by the impact on you (unless we have your consent or are otherwise required or permitted to by law). You can obtain further information about how we assess our legitimate interests against any potential impact on you in respect of specific activities by contacting us. 25.2. Performance of Contract means processing your data where it is necessary for the performance of a contract to which you are a party or to take steps at your request before entering into such a contract. 25.3. Comply with a legal obligation means processing your personal data where it is necessary for compliance with a legal obligation that we are subject to. 26. YOUR LEGAL RIGHTS 26.1. You have the right to: 26.1.1. Request access to your personal data (commonly known as a “data subject access request”). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it. 26.1.2. Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us. 26.1.3. Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request. 26.1.4. Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms. 26.1.5. Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios: 26.1.5.1. If you want us to establish the data’s accuracy. 26.1.5.2. Where our use of the data is unlawful but you do not want us to erase it. 26.1.5.3. Where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims. 26.1.5.4. You have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it. 26.1.6. Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you. 26.1.7. Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to provide certain products or services to you. We will advise you if this is the case at the time you withdraw your consent. Contact Us

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 27 m Length Finest Craft Builder 1999 Build year 240 Gross tonnage United Kingdom Registry Particulars Forerunner

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 96 m Length Builder & Co Builder 2021 Build year 1400 Gross tonnage Italy Registry Particulars Pattern

Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Home Handbook Selling / / Preparing Your Crew 29 January 2025 Last revised minutes 7 Reading time Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. minutes 7 Reading time 29 January 2025 Last revised Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. For clarity’s sake, we’re going to look at the case of United Kingdom law, which applies to any UK-registered yacht, or any vessel operating for the UK, or to any crewmember operating from the UK (which is very broadly defined). Similar rules apply to other Red Ensign vessels. COOPERATION Buyers will usually want to buy the yacht, rather than its owning company, and re-register it in the name of their new owning company – enough though this is a more complex route than simply transferring company shares. There are various reasons for this, but the most important is that an owning company’s debts, lawsuits, unpaid taxes and other obligations may not be immediately apparent. Debts can still attach to a yacht directly, but at least such risks are minimised. The upshot of this is that the existing crew’s employment has to come to an end. But they can’t simply be ‘let go’. There are legal and financial obligations that sellers must meet ahead of the sale. As soon as you’re minded to sell your yacht, you or your representative needs to discuss this with your captain(s) to ensure their full engagement and cooperation. The captain will be instructed to disseminate this information to the crew. The vessel must look her best for photoshoots, and the pre-purchase survey must not highlight missed maintenance. Recruitment is an expensive process for buyers. Re-hiring makes sense – especially in the case of engineers who will know the vessel’s systems and technical idiosyncrasies better than anyone, but the existing crew’s expectations need to be managed. The marketing period is their opportunity to shine. STATUS Nearly all crew will, as a matter of law, have the status of employee – but this isn’t always the case. Specialist technicians might be engaged on board in respect of a specific project, but they’re likely to be contractors and won’t have the same rights. CONSULTATION With redundancy on the horizon, employers are obligated to consult with crewmembers, both on an individual basis – and a collective one if 20 or more are to lose their jobs. This is not just a formality; it's about ensuring a transparent and fair process. For both types, employers should provide a written notification of any potential redundancy, and a representative should discuss the situation in person – with records of this kept. NOTICE How much notice period is required depends on the length of service, i.e. 1 week’s notice for 1 month to 2 years of service, 1 week’s notice per year of service for 2 to 12 years17, and 12 weeks’ notice for 12 or more years of service. If the employment contract specifies a longer notice period then this must be honoured. Of course, this is a problem where the sale of a yacht is to complete within a short timeframe. So, employers can offer pay in lieu of notice if the contract allows for this, or otherwise the amount will be that which is mutually agreed. REDUNDANCY PAY Employees who have at least two years’ continuous service will be eligible for redundancy pay, calculated on the basis of age, length of service and pay. REPATRIATION Repatriation is an essential seafarer’s right, enshrined in the Maritime Labour Convention (MLC) 2006. Employers are obligated to cover all costs including travel, accommodation, and subsistence until the individual is safely home. The home country should be stated in the employment agreement, and if that’s where the vessel is then the crewmember will have been repatriated simply by stepping off the passerelle. RECORDS While the importance of record-keeping throughout cannot be over-emphasised, the most important documents to obtain are the Crew Release Letters. Drafted by the seller’s lawyer, these are addressed to the seller and signed by each crewmember, confirming that they have received everything owed to them and have not claim against the owning company or the yacht. Once signed, while not a complete bar to legal action, this provides the best evidence that the crewmember concerned has no claim against the seller. The provision of a full set of such from each and every crewmember is likely to be a condition of the sale, so a refusal to provide one can be disruptive. Crewmembers can also bring a later claim in an Employment Tribunal. This is a public forum, akin to a court, in which beneficial owners can be – and have been – named. PREPARE EARLY For a long time, it was assumed that if crew didn’t like the fact that the yacht was being sold then that was simply tough luck. But, with easier access to advice, and with seafarer unions (especially Nautilus ) more willing to act on behalf of individual members, it is important to prepare crew for a sale as early and fully as possible. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Preparing the Paperwork Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Preparing the Paperwork

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 29 m Length Placeholder Yards Builder 2001 Build year 160 Gross tonnage Cayman Islands Registry Particulars Symbol

Most yacht builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. Home Handbook Building / / The Build Agreement 10 May 2023 Last revised minutes 10 Reading time Most builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. minutes 10 Reading time 10 May 2023 Last revised Most builders have their own ‘just sign here’ standard build terms. They vary enormously in length and complexity. Such agreements often miss out important aspects and can be subject to local law and jurisdiction - whose courts may not be impartial and where you may struggle to find competent, specialist lawyers. Don’t sign them. Contact us for guidance. Given the amount of money at stake, such contracts should only be viewed as an opening to contractual negotiations. Privacy concerns and the need for NDAs should be addressed early on with the engagement of an experienced lawyer. Payments should be made upon completion of build milestones, with independent surveyor signoff, and account for material costs, transport, and exchange rates. Security measures should be in place to protect against builder insolvency, including ownership transfer and guarantees from the builder's bank. Consider local legal requirements for ownership transfer and potential statutory liens by unpaid subcontractors. Clearly define the triggering events and duration of guarantees to ensure protection in case of builder insolvency or yacht issues. Establish clear and rigid procedures for change orders to avoid cost overruns and delays. Subcontractors should be carefully vetted, and the builder should remain liable for their mistakes. Materials should not be subject to title retention. Specify insurance requirements for the part-built project and ensure the wording is adequate and obtained from reputable insurers. Address force majeure events, their effect on the delivery date, and the need for a cap. Clarify buyer-ordered modifications' impact on delays. Ensure all correct legal documents for the yacht's registration are presented before final payment and agree on the place of legal delivery. Allow access for tests, inspections, and reasonable rectification of faults before delivery. Define criteria for acceptance or rejection of the yacht. Formal testing at sea is necessary to verify performance against specifications, and a margin of tolerance with incremental compensation may be agreed upon. Establish the buyer's right to refuse delivery if faults are not rectified, and differentiate between minor non-conformities and deliverable condition requirements. Warranty period should be agreed upon for materials and workmanship, and provisions for rectifying defects and compensation should be addressed. Dispute resolution mechanisms should include independent technical experts for technical matters and arbitration or litigation for non-technical or high-value disputes. Consider enforceability and confidentiality aspects when choosing between arbitration and litigation. Ensure all correct legal documents for the yacht's registration are presented before final payment and agree on the place of legal delivery. Allow access for tests, inspections, and reasonable rectification of faults before delivery. Define criteria for acceptance or rejection of the yacht. Formal testing at sea is necessary to verify performance against specifications, and a margin of tolerance with incremental compensation may be agreed upon. Establish the buyer's right to refuse delivery if faults are not rectified, and differentiate between minor non-conformities and deliverable condition requirements. Warranty period should be agreed upon for materials and workmanship, and provisions for rectifying defects and compensation should be addressed. Dispute resolution mechanisms should include independent technical experts for technical matters and arbitration or litigation for non-technical or high-value disputes. Consider enforceability and confidentiality aspects when choosing between arbitration and litigation. Privacy concerns and the need for NDAs should be addressed early on with the engagement of an experienced lawyer. Payments should be made upon completion of build milestones, with independent surveyor signoff, and account for material costs, transport, and exchange rates. Security measures should be in place to protect against builder insolvency, including ownership transfer and guarantees from the builder's bank. Consider local legal requirements for ownership transfer and potential statutory liens by unpaid subcontractors. Clearly define the triggering events and duration of guarantees to ensure protection in case of builder insolvency or yacht issues. Establish clear and rigid procedures for change orders to avoid cost overruns and delays. Subcontractors should be carefully vetted, and the builder should remain liable for their mistakes. Materials should not be subject to title retention. Specify insurance requirements for the part-built project and ensure the wording is adequate and obtained from reputable insurers. Address force majeure events, their effect on the delivery date, and the need for a cap. Clarify buyer-ordered modifications' impact on delays. An immediate concern usually not covered is privacy, which may, of course, be one of the reasons you’re looking to have a yacht built in the first place. An experienced lawyer must be engaged at the outset – not brought in at the last minute to cast an eye over what everyone else considers to be a done deal. And his or her priority will be to get NDAs in place with the builder. SPECIFICATION & COST There’s no point finding designers who pen the perfect yacht, which the builder then interprets in its own (possibly cost-cutting) way. Moreover, modifying a yacht retrospectively can be particularly time-consuming and expensive. An incorrectly interpreted specification might prevent a yacht being chartered out . So the design and specification, in compliance with specific Flag State regulations and classification society Rules (if applicable) must be set out in exquisite detail, and agreed – in principle – with the builder, along with the build cost. With this settled, attention can be turned to the principal elements of the build agreement. PAYMENTS It’s customary for payments to be made upon the completion of certain build milestones. This way, your exposure is minimised while the builder has sufficient cashflow. Whether or not a stage has been satisfactorily completed is a technical question, needing signoff from an independent surveyor instructed by you – not the builder. The first payment is made by way of a deposit before construction starts. With large projects taking years to complete, account should be made for fluctuations in materials costs and transport, and exchange rates. Placing the builder under real financial strain will be to no one’s advantage. SECURITY Consideration must be given to the consequence of the builder folding mid-build. It happens. Without agreement otherwise, the builder would be left with both instalments and an incomplete yacht as assets, with you standing at the end of a long line of creditors. So your security takes two forms. Firstly, ownership of the yacht is transferred to the buyer as it is built. Secondly, the builder supplies the buyer with guarantees, issued by the builder’s bank, for the refund of pre-delivery instalments, against which the buyer pays each such instalment. Such guarantee can also take the form of an insurance-backed Advance Payment Bond (remembering that banks can, on occasion, themselves go bust). Keep in mind that any transfer of ownership may be subject to formalities under local law – regardless of the build agreement’s law and jurisdiction – so it’s important to take local legal advice. If the worst does happen, in spite of all the financial due diligence you undertook, then you will still need to have the project moved elsewhere for completion, so check that, under local law, unpaid subcontractors aren’t automatically entitled to a statutory lien over the yacht and materials, which may prevent removal. It is vital to state in the contract that only ownership, and not risk (which may otherwise also automatically be transferred at the same time), is being transferred. If the yacht is being financed, it may also be possible to register a mortgage over the incomplete project in favour of the lender. As to the specific small print of the guarantee, the most important element is what triggers the ability of the buyer to make a demand for payment under it. The most favourable option is for the buyer to have the ability to make a demand by stating that there has been a default on the part of the builder, under the terms of the build agreement, which therefore merits payment. The builder or bank may wish instead to expressly state the particular events which could lead to payment. By far the most important triggering event which must be described in the guarantee is the builder’s insolvency. It will not be good enough, for example, for the guarantee to become payable only when a receiver has been appointed, or any dispute between buyer and builder is settled, as these may take many months or even years in some jurisdictions. Far better for the guarantee to become payable as soon as it can be shown that the builder is in financial difficulties. Moreover, the procedure for presenting the bank with a demand for payment should be simple and straightforward. And there’s no point in having a guarantee which offers high protection, but which expires too soon. Where a guarantor will only pay after the matter has been litigated (in the absence of settlement) the guarantee must last for a period of years to take account of lethargic court processes. A number of owners have, in the past, enjoyed using their own business acumen to diagnose mismanagement and their own capital to save it. But this takes time and may not lead to a solution. Moreover, if the builder survives until completion of the yacht, there may still be issues with the delivered yacht for which the buyer wants significant compensation, and may still need the protection of the guarantee. If it expires immediately upon delivery and sea trial, for example, then there will be virtually no time in which to decide whether or not demand payment, and calculate the appropriate figure. CHANGE ORDERS It may well be that it’s only when you see your yacht start to take shape that realise that the layout or specification could be improved. While there’s a temptation to discuss modifications orally – for convenience – cost overruns and disproportionate delays may result. Modification procedures must be clear, and rigidly adhered to. As large numbers of changes may also start to affect the builder’s other projects, the builder may want terms in the contract to the effect that such modifications will only take effect if the builder agrees to the proposed adjustment to the contractual price and delivery date. The builder may also want to reserve a right of refusal if other projects would be affected. Additional payments may also be required. Clearly, the builder could be put in an overly dominant position if such a clause was not well drafted. In the case of very large projects taking many years, you may also want to leave gaps in the specification to allow for last-minute choices of high-tech equipment. SUBCONTRACTORS It’s common to subcontract significant elements of the builds, but you must make sure that only approved third parties can be brought in. If there’s any doubt, ask your project manager to visit the subcontractors and their previous projects to assess quality. To avoid confusion, the builder should still be expressly liable for any of its suppliers' or subcontractors' mistakes. Further, the builder must be obliged to pay suppliers promptly, and the materials provided must not be allowed to be subject to any form of title retention – to prevent anything being reclaimed later. DAMAGE While the builder should be obliged to insure the part-built project, the quality and wording of that insurance must also be clearly specified if it’s to be worth more than the paper it’s written on. The Institute Clauses for Builders’ Risks policy wording is adequate, and security obtained on the Lloyd’s of London insurance market (or equivalent) should be insisted upon. The builder and buyer should be named as joint assured, with any claims payable to the builder and buyer as a reflection of their interests at the time of the claim. There will also be other matters to be considered in the event of the project being damaged. You should have the option of either cancelling the contract and being refunded payments made up to that point, or requiring the builder to use its insurance pay-out to carry on with the build, in spite of the enormous delays involved. Where the damage causes the project to be scrapped rather than just delayed, builders will normally be reluctant to agree to compensate buyers for the loss of their slot, and for any premium a speculative buyer hoped to make on the build. It is still open to buyers to seek separate insurance for this loss. A new delivery schedule will need to be agreed. FORCE MAJEURE Events beyond the control of the builder are known as ‘force majeure’ events. These may or may not be defined by law. Where they are not, the parties need to ensure that all possibilities are covered, and what their effect will be. Typically, the contractual delivery date will be extended, but the parties will need to clarify whether this is by reference to the number of days the force majeure event continued or the effect on the project’s critical path. Even where delay is caused by a force majeure, such latitude should be subject to a cap – so that the point where enough is enough is clear. The exception to this will be delays due to modifications ordered by the buyer. DELIVERY Sorting matters out with a builder after the final instalment has been paid can be especially difficult. It is crucial that all the correct documents relating to legal title are presented before payment is made. Otherwise the new yacht cannot be registered and will not be allowed to sail anywhere. The place of legal delivery may also have tax implications, and must be agreed. At the point of delivery, the yacht should not only function and appear as envisaged, but it should meet all the classification society and Flag State regulations, especially if it is going to be chartered. Build agreements should allow not only access to the builder for the buyer’s representative, but reasonable tests and inspections, including those to be undertaken at subcontractors’ and suppliers’ premises. The representative should be allowed to require the builder to rectify evident faults immediately. TESTING The newly completed yacht will have to be formally tested, at sea, to make sure that the performance matches the specification. This is the buyer’s opportunity to determine whether the yacht has been built in conformity with the agreed contractual specifications and meets the contractual performance criteria. The owner’s representative, Class and Flag State surveyors will attend these trials and sign off the individual test protocols. As no two yachts are ever identical, their performance in terms of displacement, speed, noise levels, vibration and range, are difficult to predict even whilst using the latest computer-aided design techniques, FEA (finite element analysis), CFD (computational fluid dynamics), tank testing and wind tunnel testing. A practical solution is to agree a small margin of tolerance followed by incremental compensation which the builder must pay if the performance criteria aren’t met but still fall within certain limits. This incremental approach can only be applied to a certain extent and thereafter the right of rejection must lie with the buyer. REJECTION Ultimately, if faults are not put right, the buyer must have the right to refuse delivery. So the build agreement must make it crystal clear whether a particular requirement is to have the legal status of a condition, entitling the buyer to refuse delivery – especially as small defects are simply inevitable in any large project. The laws of most jurisdictions are vague on such matters, involving considerations of whether the yacht is of ‘satisfactory quality’ and ‘reasonably fit’ for purpose, and therefore in a ‘deliverable’ condition. This problem is made much worse by the critical importance of aesthetic elements. The standard contractual term for the small and inevitable defects is a ‘minor non-conformity’. Usually, the buyer will be forced to accept delivery with the minor non-conformity list outstanding, under the proviso that the list is taken care of by the builder as soon as possible. WARRANTY Not all of your new yacht’s inevitable little faults will come to light during the trails. Only over time will all the equipment and systems be used in varying weather conditions. The builder should guarantee materials and workmanship for a period of warranty – at least a year – after delivery. Builders will usually agree to correct defects during this period, but not to compensate. The builder may demand that otherwise pre-existing legal rights are given up, and that once the warranty period has expired no further responsibility will rest with the builder. The builder may not wish to compensate for loss of use and charter income, and a detailed notification procedure may also have to be complied with. Such demands should be considered carefully. Where significant concessions are granted by the buyer, the contract should ideally provide for the last payment instalment to be withheld until the end of the warranty period. It may be necessary to bring the yacht into dry-dock, so the buyer must be entitled to have work carried out by a yard other than that in which she was built if cruising schedules are not going to be spoiled.. DISPUTES Disputes between the buyer and builder are most likely to be technical in nature. Even the lustre of paint, for example, can be objectively measured. As courts are better at deciding points of law rather than fact, it makes sense to decide which points would be better decided by an independent expert. A representative from the classification society, for example, is typically agreed on to decide points upon which the society has created technical rules, but the use of another mutually agreed third-party expert should also be agreed for other matters. The expert should be asked to provide an independent opinion, and not act as arbitrator. Arbitrators can decide upon matters of law and evidence, and this requires the expertise of an experienced legal expert. Matters which are non-technical, or which involve large sums, should be agreed to be arbitrated according to the rules of an established arbitrators’ association, or referred to court. The choice of arbitration or litigation may depend on the enforceability or otherwise of an arbitrator’s decision, compared with a court judgment, in the home states of the parties involved. Sometimes, an arbitrators’ decision will be the more powerful of the two, and – unlike court proceedings – arbitrations are confidential in nature. To include long-term flexibility, and an acceptance that some flaws will be evident in the finished product, into a cast-iron contract, is no easy task. Time spent discussing and agreeing on this at the start will be a sound investment compared with the potential arguments which bubble-up later on. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about The Build Process Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The Build Process

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 33 m Length DMS & Co Builder 2017 Build year 350 Gross tonnage Malta Registry Particulars Display

The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. Home Handbook Regulation / / The ISM Code 18 May 2009 Last revised minutes 7 Reading time The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. minutes 7 Reading time 18 May 2009 Last revised The International Management Code for the Safe Operation of Ships and for Pollution Prevention (‘ISM’) Code applies to a significant number of large yachts. Members may think they need have little to do with day-to-day logistics, but they would be well advised to familiarise themselves with the basics of the code. And there’s much to learn for Members owning yachts to which the Code does not apply. The Code developed by the International Maritime Organisation is mandatory for certain yachts flying the flag of a maritime nation and affects yachts calling at ports in these countries. The Code applies to yachts of at least 500 gross tonnage engaged in "trade," which includes chartered yachts. The Code requires the implementation of a safety management system (SMS) to ensure safety and pollution prevention. The responsibility for safety lies with the 'Company' that has assumed responsibility for the yacht's operation from the owner. The SMS consists of set procedures outlined in manuals held ashore and onboard the yacht. Non-conformities reported to the Company must be remedied, and the Company must keep itself informed and act if issues arise. Compliance with the Code also requires observance of other international and flag state safety regulations. A designated person ashore (DPA) is appointed to ensure compliance with the SMS and statutory requirements. The Company must obtain a Document of Compliance (DOC) and a Safety Management Certificate (SMC) to operate the yacht legally. The Code helps prevent pollution, but compliance is not guaranteed, and prosecutors and insurers may scrutinize the actual implementation and maintenance of safety systems. Non-conformities reported to the Company must be remedied, and the Company must keep itself informed and act if issues arise. Compliance with the Code also requires observance of other international and flag state safety regulations. A designated person ashore (DPA) is appointed to ensure compliance with the SMS and statutory requirements. The Company must obtain a Document of Compliance (DOC) and a Safety Management Certificate (SMC) to operate the yacht legally. The Code helps prevent pollution, but compliance is not guaranteed, and prosecutors and insurers may scrutinize the actual implementation and maintenance of safety systems. The Code developed by the International Maritime Organisation is mandatory for certain yachts flying the flag of a maritime nation and affects yachts calling at ports in these countries. The Code applies to yachts of at least 500 gross tonnage engaged in "trade," which includes chartered yachts. The Code requires the implementation of a safety management system (SMS) to ensure safety and pollution prevention. The responsibility for safety lies with the 'Company' that has assumed responsibility for the yacht's operation from the owner. The SMS consists of set procedures outlined in manuals held ashore and onboard the yacht. The Code was developed by the International Maritime Organisation and, being uncontroversial, has become a part of domestic law in most maritime nations. The Code is therefore mandatory on board certain yachts flying the ensign of such a country, under what is known as the ‘flag state’ law. It also affects certain yachts calling at ports in some of these countries, by virtue of the ‘port state’ law, even if it is not required by the flag state law. The Code does not apply to all yachts subject to a particular flag state law, however. It only applies to those of at least 500 gross tonnage (GT) which are engaged in ‘trade’. Yachts which are chartered will normally be considered to be engaged in trade. SCOPE The Code concerns a great deal more than just having the right number of fire extinguishers or liferafts. It requires owners (or their appointed managers) to put in place management systems which are designed to ensure that the yacht is operated with the utmost regard to safety and pollution prevention. A complete culture of safety and continual improvement must be created. RESPONSIBILITY Where the yacht is technically owned by a single-purpose offshore owning company, ultimate responsibility for safety can nevertheless still lie with the beneficial owner. Responsibility under the Code, however, is said to lie with the ‘Company’. The Company is the party which has assumed responsibility for the operation of the yacht from the owner: it must establish the appropriate policies, and provide the necessary resources and shore-based support. The Company could be anyone, but someone has to formerly agree to take on this role if the owner is to avoid liability. This is where the managers step in. Under the Code, arranging safety systems becomes a surprisingly specialised task. This is why the managers should be chosen, and engaged, with the utmost care and attention to detail. SYSTEM The Company must implement a safety management system (‘SMS’), consisting of set, verifiable procedures. These are tailored to the individual yacht, and should ensure that the yacht is run in a way which complies with the Code. The SMS is contained in sets of manuals, held both ashore and on board. They typically outline the system itself, state general safety and environmental policies, and describe the organisation of the Company. Shoreside manuals will set out the régime for audits, risk assessment and accident analysis. Shipboard manuals will also give the planning, operating and reporting procedures. They cannot just be left on the shelf like an engine manual, however. Port inspectors, for example, may examine the manuals and interview the crew, who will be expected to be both familiar with them and actually using them. Key operational procedures and corrections are planned and recorded, as well as being audited internally and externally. Taken out of context some procedures may appear almost laughably prescriptive. In fact, in the context of the Code, this process leads both to a continual process of refinement, and independently certifiable standards of conduct. NON-CONFORMITY Where a Code ‘non-conformity’ is reported to the Company but is not remedied, or if a blind eye is turned to it, or if the system is such that non-conformities go reported, the Company will be in breach of the Code. Before the Code was introduced, the owner or manager could have legitimately said that there may have been safety issues on board the yacht which they were not aware about. By contrast, the burden is now on the Company to keep itself informed and act if all is not in order. All roles are now more accurately defined, meaning that it is now much easier to assess after an incident who was responsible for what, and what they knew or should have known. FURTHER COMPLIANCE The Code also requires and ensures observance of other international and flag state safety regulations. The obvious example is the fire drill, which cannot be meaningfully conducted unless all the correct fire fighting equipment is present. In fact, compliance with the Code requires compliance with a considerable array of international maritime conventions, ranging from crew training to vessel stability. From the owner’s point of view, this is a good thing. DESIGNATED PERSON A formal line of communication must exist between the Company and the yacht. This is absolutely vital. The Company has to appoint a designated person ashore (normally abbreviated to ‘DPA’ or ‘DP’) to sit at one and of that line. His (or her) job is to keep an eye on the safe and efficient operation of the yacht as the SMS demands, and take all necessary steps to ensure compliance. The DP must also ensure that proper provision is made for the yacht to be manned, equipped and maintained such that it is fit to operate in accordance with both the SMS and whichever other statutory requirements are dreamt up from time to time. The role of DP is often combined with others such as Technical or Operations Manager. In order that the DP is able to do all this, he must have: Direct access to the highest level of the Company’s management; Sufficient authority to influence decision-making; and Appropriate knowledge and experience of the operation of the type of yacht in question. So important is the DP’s role, that he may be jailed by the flag state should he fail to discharge certain key responsibilities. Port states can also be merciless with a DP, even where the DP is based overseas. A DP based in Denmark, for example, was recently the subject to an indictment by the United States Department of Justice. As the DP can be called upon to take action at any time, a deputy may be appointed. Some managers have been known to appoint personal assistants or secretaries to this role. This is poor practice, and indicates a culture of profit over safety. Beyond the DP and his deputy, the Code states that the Company must ensure that all personnel involved with the SMS have an adequate understanding of the relevant rules, regulations, codes and guidelines. Safety used to be the Captain’s domain, or at least the buck stopped with him or her. In terms of the immediate safety of the yacht, this remains the case. As the Company bears the responsibility of Code compliance on behalf of the owner, the existence of the DP ensures that the Company cannot leave responsibility resting on the Captain’s shoulders. Captains and managers must work together to ensure an adequate and workable system is developed. This is enshrined in the preamble to the Code, which explicitly states that in matters of safety and pollution prevention it is the commitment, competence, attitudes and motivation of individuals at all levels that determines the end result. LIABILITY Before the Code was imposed, yacht managers tended to take on the role of owner’s agent. They might have assisted the owner’s accountants, but it was the Captain who had the most to do the owner. The arrangement was based on reducing hassle for owners as much as possible. This arrangement may still, of course, suit owners of yachts not subject to the Code. As managers must take up a more interfering and directing role by virtue of the Code, there is no scope for resentment of this on the part of the crew. Instead, comfort should be taken in the fact that liability is shared with those ashore, who must keep safety issues under close scrutiny, and make sufficient resources available. Nevertheless, the owner may wish to keep an eye on whether the manager’s style is becoming too autocratic, perhaps leading to a dissatisfied crew. CERTIFICATION Once auditors from the flag state have examined the SMS, both on paper and in practice, a Document of Compliance (‘DOC’) will be issued in respect of the Company. A Safety Management Certificate (‘SMC’) may then be issued in respect of the yacht managed by that Company, as long as the SMS has been successfully implemented on board. Both these documents must be in place for the yacht to be operated legally. They will be audited regularly. Because of the number of individuals involved in the planning, undertaking and recording of actions, and the independence of external auditors, deliberate falsifications are sure to highlight themselves. Where logs have been ‘flogged’, i.e. where false entries have been made with regard to, for example, hours worked, the DOC may be withdrawn immediately. APPEARANCES In comparison with trading ships, yachts may appear to have an unblemished safety record. This is a little illusory. Whilst crewmembers may exude joyful efficiency, and the yachts themselves are kept in immaculate condition, this can have more to do with complying with the owner’s aesthetic wishes than with the maintenance of a safety culture. Accidents involving yachts do happen: they tend, however, not to involve large scale loss of life or pollution, and are not especially newsworthy. That courteous crewmember may in fact have worked excessive hours during a busy charter season, or may have been left in command without the necessary experience or qualifications. INSURANCE Following an incident, insurers will consider their liability for the claim thoroughly. Standard insurance clauses typically allow an insurer to avoid paying out, if the yacht was subject to certain perils resulting from a lack of ‘due diligence’ by the yacht’s management. The actions of the Company will be open to scrutiny by the insurer seeking to establish whether due diligence was exercised, and will be subject to a post-incident analysis. The ISM Code paper-trail is the obvious starting point. All documents in the possession of the Company which may be useful to the insurer, including internal documents, may have to be made available in the event of litigation. Any conviction of the Company or DP for Code failings would provide the insurer with the best possible evidence of a failure to exercise due diligence. INSPECTIONS Inspections of yachts by port officials tend to occur less frequently than for trading ships. This is understandable given that yachts tend to wear more respectable ensigns, and it is normally the official policy at ports to concentrate inspections on vessels which are likely to pose the greatest hazard to that port and the surrounding coastline. Nevertheless, where safety failings lead to even trivial incidents, authorities may choose to detain or even take action against a yacht herself, making the use of standard liability-avoidance vehicles, such as companies and trusts, futile measures. The knock-on effects of breached charter agreements and all-round inconvenience are obviously best avoided. The fact that the Code also helps to prevent pollution is a very good thing as far as owners are concerned. Pollution in some jurisdictions can lead to surprisingly hefty fines and even imprisonment. Spotter planes can find offending yachts with ease, and it is surprising how far even the smallest quantity of fuel will spread across the water. Unfortunately, the Company cannot simply wave the DOC and SMC in the air and expect forgiveness from prosecutors or insurers. Whilst useful, neither guarantees compliance. They simply show that, at a particular point in time in the past, the SMS, as applied by the Company and on board the yacht, met the minimum internationally agreed standards. Further, the external audit which led to the award of the DOC and SMC will have been based only on samples, will not have taken that long, and will have been far from exhaustive. By contrast, once a prosecutor or insurance company is able to access the various manuals and records, these can be scrutinised against actual findings at their leisure. It has been recognised that less respectable flag states may chose to ignore their responsibilities and may be prepared to certify compliance in any event. CONCLUSION From a legal viewpoint, the Code can be the owner’s closest ally or most feared enemy, depending on just how successful its implementation and maintenance has actually been. Owners do least have the luxury of being able to buy-in the appropriate expertise. Arranging and maintaining Code safety systems is a highly specialised task, however, and owners should grasp the fundamentals of the Code, and choose the appropriate managers accordingly. Thereafter, they should consider whether the managers and crew are successfully working together: this required by the Code and is important for morale and staff retention. Although the implementation of the Code does involve more paperwork and expense, it is the consequence of concerns about ineffective safety management stretching back many decades. Full and successful implementation will go a long way to ensuring that physical safety and pollution risks are kept under control. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Port State Control Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Port State Control

It’s important to understand the yacht insurance claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. Home Handbook Insuring / / Making A Claim 18 May 2023 Last revised minutes 4 Reading time It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. minutes 4 Reading time 18 May 2023 Last revised It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. In order to receive payment or obtain the benefit(s) specified in the contract, the insured must inform the underwriter that it has experienced a loss that it believes is covered by the contract, and provide evidence demonstrating that their claim is indeed covered by the contract. A specific claims procedure may be set out in the contract. Written notice may be required – which may need to be in a particular form. Notice must be given within any specified time frame, or otherwise within a reasonable period. If the notice provision is considered a condition precedent, the underwriter may be able to deny liability. CAUSATION The insured is normally responsible for proving, on a balance of probabilities: The amount and scope of their loss; and That their loss was ‘proximately caused’ by a peril covered by the policy, unless the policy states that the loss may be ‘directly or indirectly’ caused by such a peril (or similar). Quite often, losses involve a chain of events, one or more of which are excluded from coverage. Generally, if there are two proximate causes of loss, one covered and one not covered, the underwriter will be on the hook for that loss. But if the insured cannot establish which peril (covered or not covered) caused the loss, or if none of the causes appear inherently likely, there will be no coverage. DUTY TO CO-OPERATE The insurance contract normally obligations of cooperation for both the insured and the underwriter when a claim is filed. In the case of a liability policy, the underwriter is generally required to negotiate with third party claimants in good faith, taking into account the insured's best interests – and, if necessary, assume responsibility for defending against a third party claim. The insured, meanwhile, must not admit liability without the underwriter's consent – and must obtain the underwriter's approval before settling a third party claim. PAYING CLAIMS Underwriters must pay valid claims within a ‘reasonable’ timeframe. If there is a delay or failure to pay, the insured can sue for damages for any additional losses suffered. It’s up to the insured to establish that the payment was only made after an unreasonable delay. Where the underwriter has reasonable grounds to dispute the claim, the manner in which it handles the claim can be a relevant factor in determining whether the implied term of timely payment was breached. SUBROGATION When an underwriter pays out money to an insured under an indemnity policy, such as Hull & Machinery , the rules of ‘subrogation’ allow the underwriter to recover all or part of that money from the third party who caused the loss. Subrogation means that the underwriter can step into the insured's shoes and pursue the third party itself, seeking to recover what it’s just paid out. The underwriter can not only claim the rights of the insured but also any benefits awarded by a court, such as interest on judgment debts and costs. The right of subrogation can be explicitly stated in the insurance contract, but it is also a pre-existing legal right. As set out above, it is essential for the insured not to jeopardize the underwriter's subrogation rights by settling or abandoning the claim against the third party, as this could lead to the underwriter seeking damages from the insured. FRAUDULENT CLAIMS Underwriters are always alive to the possibility of fraud. They’re seen it all before. Even where a settlement has been reached between underwriter and insured, this can be invalidated where it’s later shown that there was a fraudulent misrepresentation by the insured. Underwriters have the option to terminate the insurance contract from the date of the fraudulent act - without refunding any premiums. This means that the underwriter can refuse liability for genuine losses or claims made after the fraudulent act. Claims made before the fraudulent act will be unaffected. DOUBLE INSURANCE Recent years have seen a rise the use of support yachts, carrying large tenders and helicopters. If close attention isn’t paid to the policies of both yacht and tender (itself often a large motor yacht), it is possible to end up in a situation where the tender is ‘double insured’. In the event of a loss, the insured generally has the freedom to choose under which policy to claim payment. However, this is subject to the terms and conditions of each insurance contract, and some policies may prevent the making of a claim if there is other insurance covering the same risk. Double insurance does not provide additional protection to the insured. Instead, it may complicate the claims process and require coordination between multiple insurers. If an underwriter pays out a claim under an insurance policy, it may have the right to seek a contribution from another underwriter that provided coverage for the same loss. CONCLUSION Should any incident ever arise, potentially involving damage to the yacht or liability to a third party, sitting back is not an option. The insured is usually under an express obligation to notify the underwriter, and do everything reasonable to minimise the loss. The advice of the underwriter or broker, at the initial stages of an incident, is therefore vital, but the interests of underwriter and insured not being one and the same, and it will be prudent for you to take independent advice, right away. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Who's Who Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Who's Who

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 38 m Length Example Yachts Builder 2003 Build year 380 Gross tonnage Marshall Islands Registry Particulars Blueprint

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 105 m Length Builder & Co Builder 2022 Build year 1980 Gross tonnage Panama Registry Particulars Role Model

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 33 m Length Finest Craft Builder 1937 Build year 116 Gross tonnage United Kingdom Registry Particulars Paragon

Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Home Handbook Financing / / Loan Security 4 April 2017 Last revised minutes 6 Reading time Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. minutes 6 Reading time 4 April 2017 Last revised Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. At the outset, it’s important to note that, with regards the yacht, the lender can still be left competing with the following who may automatically have claims against a yacht – which is why security has to be so wide-ranging: Unpaid crew and suppliers, collision victims, etc, all have liens over yachts Port authorities can have a statutory right to detain a yacht for unpaid dues Yards can have possessory liens where works have been carried for which the owner hasn’t paid: where the yacht is out of the water, it’s a case of no-cash-no-splash MORTGAGES A mortgage grants a lender (the ‘mortgagee’) rights against the yacht itself (known as rights ‘in rem’), rather than just against the owner (the ‘mortgagor’) in the event of default. While it still needs to be beefed-up by other types of security, such as covenants, and assignments of earnings and insurances, the mortgage is the most important type of security taken by a lender. Mortgages over yachts are known as ship mortgages to distinguish them from real estate mortgages. A mortgage can be taken over the whole yacht or just a number of the 64 available shares. MORTGAGE REGISTRATION The mortgagee’s power to sell the yacht in the event of default is specifically granted by statute. A mortgage is said to be ‘statutory’ where it has been set out and registered as prescribed by statute (in this case, regulation 57 of, Merchant Shipping (Registration of Ships) Regulations 1993 (SI 1993/3138) and paragraph 7 of Schedule 1 to the Merchant Shipping Act 1995. Otherwise, they are known as ‘common law’ mortgages but these are very unusual. A statutory mortgage can only be created over a yacht registered under Part I (but not the Part III ‘Small Ships Register’). The mortgagee will likely use a Form 4736 ‘Account Current’ statutory mortgage to secure not just the principal sum and interest but also costs and expenses. A Notice of Mortgage Intent MSF 4739 can be lodged in advance in order to record as early a date as possible for the mortgage: this is important when establishing the priority of debts in the event of later default. The mortgage is a brief document, just setting out the names of the parties, details of the yacht, and a short description of the secured obligation with reference to the agreement and the deed of covenant that supplements the mortgage. It must be lodged with the Registrar General of Shipping and Seamen, and the relevant fee paid. The Registrar will the register and returned the mortgage document. Where the mortgagor is a company registered in England and Wales, then, by virtue of section 860 of the Companies Act 2006, details of the statutory mortgage, the deed of covenant and any other security documents must be sent to the Registrar of Companies within 21 days, failing which such documents will be void as against a creditor, liquidator or administrator. COVENANTS & ASSIGNMENTS As the mortgage document itself is so brief, and there’s no scope for amending or adding to it, and also as the mortgage attaches to the yacht rather than the owner, it must be supplemented by covenants and assignments. Covenants dictate various dos and don’ts, and may be set out in the loan agreement and/or separately in a deed of covenant according to the lender’s house style. Assignments transfer rights from one party to another. The remainder of this article considers common covenants and assignments. For convenience, it is assumed that all covenants are set out in a deed. Unlike mortgages, deeds of covenant, and any other collateral security documents, cannot be registered with the Registrar of Ships. NON-STATUTORY MORTGAGE While a deed supports the mortgage, deeds can still have a clause by which the yacht is mortgaged. This is needed as a backup in case the statutory mortgage is invalid – which can be the case where, for example, the mortgage hasn’t been registered with the Companies Register. The deed will create a non-statutory mortgage which, while better than nothing, won’t be enforceable against a buyer who buys in good faith and isn’t aware of the mortgage, and will be ranked below a statutory mortgage should the mortgagor default. YACHT REGISTRATION The mortgagor will promise in the deed the yacht will be registered as a ship in the United Kingdom, and will remain, so, under the same registered name, for as long as the yacht is mortgaged. This is necessary as UK Part I ship registrations expire after only five years unless renewed. CHARGE REGISTRATION The deed will require, where the owner is a company registered in England or Wales, the mortgage to be registered as a charge with the United Kingdom companies register (known as Companies House). This is fallback requirement as the mortgagee isn’t going to leave anything to chance and will (or should) have registered the mortgage as soon as possible as not doing so risks the mortgagee loosing both the security and priority. INSURANCE Arguably just as important as the mortgage is the borrower’s covenants in respect of insurance, and policy assignments. In particular, the borrower covenants to: At the borrower’s expense, insure the yacht, for a value, on terms, and with an underwriter(s), all agreed with the lender. Comply with all policy terms throughout the term of the loan, including, of course, prompt payment of insurance premiums. Renew policies as needed to maintain cover. Not settle a claim without the lender’s consent It’s not only the yacht itself which must be insured, but third party liabilities which, if not satisfied, will expose the yacht itself to claims which might rank higher than the lender’s as mortgagee. Particular risks must also be covered, such as war risks, and mortgagee’s interest insurance. The latter provides cover where a failing on the borrower’s part means that other policies are rendered ineffective. For larger yachts, the policies must be assignable to the lender, and confirmation will have to be provided by underwriters that such assignments are noted on the policies and that proceeds of the insurance will be paid to the lender if necessary. For smaller yachts, it may be sufficient for the lender to be named as a co-assured on the policy. CLASSIFICATION SOCIETY An explanation as to the role of classification societies (often known as ‘class’) can be found here . Assuming the yacht must be classed, if the yacht isn’t maintained and surveyed as Class Rules stipulate, the yacht is said to be ‘out of class’ – which can lead to insurance policies being invalidated, as well as the yacht not being maintained properly. As this would jeopardise the mortgagee’s security, the deed of covenant will stipulate maintenance in class. REGULATORY COMPLIANCE Depending on the yacht’s length, gross tonnage and whether it’s registered for chartering, it will be subject to various regulations which help ensure it’s used safely. H ere’s a summary of those affecting your yacht . As well as being detained by port officials, non-compliance can render insurances void, which has obvious implications for the mortgagee’s financial security. Compliance with such regulations will be a key provision. INSPECTION As Class rules and flag state regulations only help to ensure the safe construction, maintenance and operation of the yacht, the mortgagee will want to have the opportunity to inspect the vessel to ensure that aesthetic aspects, and with them much of her value, are also being maintained. The mortgagee must therefore have a right to inspect, and this can be supported by a specific minimum value. MANAGEMENT While ‘yacht management’ can cover a broad spectrum of support services, regulations may require management of a specific type and quality, failing which the vessel may be off-cover for insurance purposes and liable to detention following a port state inspection. Managers also vary in approach and quality. Unsurprisingly, therefore, mortgagees will want to approve which manager is appointed. OPERATIONS The mortgagee may wish to restrict the movement of the yacht, not only by stipulating that she is to be kept out of waters close to areas known for piracy or adjacent to unstable countries, but also away from areas where actions in the event of default may be difficult or impractical. It may also be necessary for the deed to spell out that the yacht is to be used in a legal way – for example, not chartering out where the yacht is not registered as a commercial vessel and insured accordingly. CHARTERING An assignment of chartering income (if any) can be a helpful tool for a lender looking to recoup money, especially while awaiting the sale of a yacht in the event of default. Written notice will need to be served on the charterers – which can be commercially awkward for the borrower and a good incentive to keep on track with loan repayments. INCIDENTS Where any kind of incident occurs involving the yacht, whether that be a fire, grounding, flooding, or a legal action such as arrest or other formal court proceedings, the mortgagee will want to know right away, and the deed of covenant will reflect this. Crucially, liens can rank higher than a mortgage. MODIFICATIONS Refits don’t always improve or even add value to yachts: an owner’s ‘personal stamp’ can adversely affect value and may not even be carried in compliance with regulations. The mortgagee will want to know about, and if necessary veto, any proposed modifications. DISPOSAL While obvious, it needs to be set out in the deed of covenant that the mortgagor cannot sell the yacht while it provides security. COLLATERAL SECURITY As well as the mortgage and deed of covenant, the lender may want a mortgage or charge over the shares in the yacht owning company, involving share certificates being deposited with the lender, together with signed but undated stock transfers. Going one stage further, the lender may also require a personal guarantee from the beneficial owner. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Loan Enforcement Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Loan Enforcement

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 58 m Length Thompson Yachts Builder 2020 Build year 642 Gross tonnage United Kingdom Registry Particulars Specimen

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 67 m Length Italia srl Builder 2000 Build year 608 Gross tonnage United Kingdom Registry Particulars Simulator

From afar, buying a superyacht looks straightforward. You have money, and you wish to exchange it for a large, shiny boat. You browse websites, attend some yacht shows, view some vessels, shake hands and sign an agreement – et voilà – it’s yours. Except, of course, it isn’t that straightforward. Beneath the perfect teak decks is a matrix of interconnected systems, built and maintained in accordance with specifications and regulations, and run by a community of skilled seafarers. Home Handbook Buying / / You Need Help! 13 May 2026 Last revised minutes 5 Reading time From afar, buying a large yacht looks straightforward. You have money, and you wish to exchange it for a large, shiny boat. You browse websites, attend some yacht shows, view some vessels, shake hands and sign an agreement – et voilà – it’s yours. Except, of course, it isn’t that straightforward. Beneath the perfect teak decks is a matrix of interconnected systems, built and maintained in accordance with specifications and regulations, and run by a community of skilled seafarers. minutes 5 Reading time 13 May 2026 Last revised From afar, buying a large yacht looks straightforward. You have money, and you wish to exchange it for a large, shiny boat. You browse websites, attend some yacht shows, view some vessels, shake hands and sign an agreement – et voilà – it’s yours. Except, of course, it isn’t that straightforward. Beneath the perfect teak decks is a matrix of interconnected systems, built and maintained in accordance with specifications and regulations, and run by a community of skilled seafarers. Superyacht purchases demand specialised expertise beyond general business or negotiation experience. Epistemic trespassing causes confident decisions despite lacking essential yacht-specific knowledge or skills. Deferred maintenance, compliance, and operational realities often escape inexperienced yacht purchasers’ understanding. The Dunning–Kruger effect encourages misplaced confidence while concealing critical gaps in expertise. Successful owners recognise complexity and assemble strong multidisciplinary advisory and operational teams. Thorough due diligence, realistic budgeting, and scepticism reduce costly superyacht purchasing mistakes. The Dunning–Kruger effect encourages misplaced confidence while concealing critical gaps in expertise. Successful owners recognise complexity and assemble strong multidisciplinary advisory and operational teams. Thorough due diligence, realistic budgeting, and scepticism reduce costly superyacht purchasing mistakes. Superyacht purchases demand specialised expertise beyond general business or negotiation experience. Epistemic trespassing causes confident decisions despite lacking essential yacht-specific knowledge or skills. Deferred maintenance, compliance, and operational realities often escape inexperienced yacht purchasers’ understanding. WHAT'S TRESPASSING? In his eponymous 2019 paper, Nathan Ballantyne, Associate Professor of Philosophy at Arizona State University, defines what he calls ‘epistemic trespassing’. This is when someone who is an expert in one field trespasses into another – in which he or she lacks the knowledge and/or skills needed for good judgment, and yet confidently makes decisions anyway – leading to suboptimal outcomes. In other words: just because you are brilliant at making money, you’ll still need help when buying. And that, argues the professor, is exactly as it should be. Epistemology is just the term given to that branch of philosophy devoted to the study of knowledge: its nature, sources, justification, and limits. Epistemic expertise requires both sufficient knowledge and the skills required to use that knowledge properly. Being an ‘expert’ here doesn’t mean omniscience: experts can disagree with each other while still meeting the thresholds of knowledge and skill. FORMS OF TRESPASSING Specifically, trespassing takes one of the following forms: Having the skills but lacking knowledge. For example, you’re excellent at negotiations, but lack certain technical facts – such as the realities of deferred maintenance. Having knowledge but lacking the skills. For example, you’ll be shown the stability booklet but you haven’t got a clue what Hydrostatic Particulars are. Lacking both knowledge and skills. For example, you don’t know what you don’t know about class compliance or charter restrictions. Most trespasses occur due to the hybrid nature of the subject matter. So while you’ll be familiar with asset procurement, superyachts are a very different proposition to, say, real estate or aircraft. Similarly, your businesses may employ vast numbers of workers, but their rights and expectations will differ significantly from those of seafarers. The Dunning–Kruger effect also comes into play. This is the academic label applied to situations where people who lack knowledge are also oblivious to their inexperience, leaving them unreasonably confident in their judgment. It’s a ‘double curse’ of inability, plus an inability to detect that inability. Trespassers may have just enough knowledge to feel confident, but not enough to avoid error. NOT ALWAYS OBVIOUS Buy why isn’t trespassing obvious to the trespasser? Ballantyne has identified three main defences, which, in the context of a superyacht purchase, are as follows: You’re trespassing in a field whose experts’ opinions do not affect your conclusions. You might think that surveyors are pessimists, or that your crew can surely put things right later. You could be right. You could be wrong. We’ll see. You’re trespassing, but you think that you already have all the knowledge you need. You’ve seen from your own inspection that everything looks fine, so it probably is. But that’s not knowledge: it’s vibes. You’re trespassing, but you consider your existing skills to be sufficiently transferable and give you all the expertise you need. You’ll treat the purchase as just another deal to be completed, without sufficient though to the long term. Superyacht ownership is not simple. It is a sustained exercise in managing complexity across multiple domains simultaneously - technical, legal, regulatory, financial, operational, and interpersonal. The people who do it well are not the people who understand all of it themselves. They are the people who understand that they don't, and who surround themselves accordingly. PRACTICAL DOS AND DON'TS So now we know that trespassing is a recognised behavioural pattern, what are the resulting dos and don’ts when buying a superyacht? Here’s ten of each: Do: Accept that you’re an expert in many things – but not everything Put together a team, covering all aspects of the purchase, not just the technical, including legal and tax - in all relevant jurisdictions Model a five-year plan of true likely operating costs and any charter income Discuss the vessel and your itineraries with insurers as soon as possible Start engaging with candidate shoreside technical managers if required Obtain full references from candidate captains and crewmembers Get to the bottom of what any recent ‘refit’ did or did not entail Look out for obsolete equipment with poor support Treat sea trials as screening rather than proof Seek second opinions if need be Don’t: Accept a non-standard sale and purchase agreement: the industry standard contracts aren’t ideal but the parties’ positions are broadly known and understood Allow ‘private use’ as an excuse for thin paperwork and a lack of certification and records Skip any due diligence for the sake of beating a competing purchaser Rely on charter projections without discussing with charter brokers first Engage technical managers on a lowest-bid basis Rely solely on the reputation of the builder Treat any test or trial as conclusive Think that your crew will be able to fix every defect picked up in the survey Agree to any refit work without a works scope and fixed payment milestones Dismiss bureaucratic stages and documents as mere paperwork Nathan Ballantyne's paper Epistemic Trespassing was published in the renowned academic journal Mind in 2019. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Corporate Ownership Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Corporate Ownership

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 38 m Length Finest Craft Builder 2019 Build year 362 Gross tonnage Cayman Islands Registry Particulars Ideal

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 39 m Length Builder & Co Builder 1921 Build year 210 Gross tonnage British Virgin Islands Registry Particulars Template

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Thompson Yachts Builder 2005 Build year 670 Gross tonnage Malta Registry Particulars Guide

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 48 m Length DMS & Co Builder 2003 Build year 420 Gross tonnage British Virgin Islands Registry Particulars Future

Home Journeys Eastern Seaboard / / New England Charm At last we reach Boston Harbor and its islands. Boston Harbor is older than most countries. It’s gritty. Polished – lightly – for the tourists, but without losing its edge. There’s the glint of glass skyscrapers, sure, but they’re sitting awkwardly next to 18th-century brick buildings. It’s a city that’s never quite made up its mind about whether it wants to be New York’s cooler cousin or a living history museum. Then there are the islands: little green blips like Spectacle, Thompson, and George’s that offer refuge from the city’s pace, with forts, trails and beaches. It’s authentic, and all the better for it. Waypoint 7 Boston Harbor The penultimate waypoint is Provincetown (or “P-Town,” as it’s known by those who wear feather boas unironically) is a glorious explosion of art, colour, and character perched on the edge of Cape Cod. It’s one of the very few places in the States where the weird, the wild, and the wildly wealthy have all agreed to share a bit of sand and sea without shouting at each other. It’s part art colony, part fishing village, part social experiment—and all of it works in a glorious, slightly chaotic way. Climb the Pilgrim Monument, explore Herring Cove Beach, or go whale watching. Waypoint 6 Provincetown This is where the journey peaks in old-money splendour: an island where cobblestone streets and historic whaling cottages transport you back in time. It’s got taste. And manners. Even the seagulls seem well-behaved. This is not a place where you show off your wealth by revving a Lamborghini. You park your battered car outside a house with perfectly weathered shingles that’s been in the family since the Civil War. Explore the Whaling Museum to delve into the island's rich maritime history, or visit the Sankaty Head Lighthouse for breathtaking coastal views. It’s charming, peaceful, and absurdly picturesque. Waypoint 5 Nantucket Known as Amity in the 1975 film Jaws, it’s less workaday than depicted. Martha’s Vineyard exudes charm and sophistication It’s a place where people ‘summer’ rather than merely spend their vacation. The island is a patchwork of little towns, each with its own flavour. You can cycle the entire island, get lost in farmers’ markets, eat lobster rolls, or browse art galleries. Strolling through Edgartown, all white picket fences and centuries-old captain’s houses, you half expect Chief Brody to burst onto the street shouting about closing the beaches. It does add a certain thrill to paddleboarding. Waypoint 4 Martha’s Vineyard Today we’re dropping by Cuttyhunk Island, a tranquil retreat known for its pristine beaches and abundant marine life. Cuttyhunk is the westernmost of the Elizabeth Islands, a chain of rugged, mostly private lumps of land owned by people who have last names that sound like Ivy League libraries. But public Cuttyhunk is the exception. When you arrive, it feels less like entering a port and more like stumbling into someone’s well-kept secret. There are no cars and no boutiques. In fact, there’s not much to do here except eat fresh local oysters and congratulate yourself on your life choices. Waypoint 3 Cuttyhunk Island Next is Block Island, anchoring at Great Salt Pond. At only about 7 miles long and 3 miles wide, it’s one of the most charming, gloriously old-fashioned specks of land in the United States. The island runs on what one can only describe as “lobster time.” People are either going to eat it, catch it, or talk about how good it was last night. Explore the island's scenic trails by bicycle, visit the iconic Southeast Lighthouse, or relax on the beaches. The town of New Shoreham is basically a handful of weather-beaten buildings which have probably looked exactly the same since Roosevelt was president. There’s something refreshingly unbothered about the place. Waypoint 2 Block Island We’re beginning our journey in Newport - the spiritual home of American yachting. Back in the Gilded Age, the great and the grotesquely wealthy (think Vanderbilts, Astors, people whose surnames sound like investment banks) descended on this seaside town and decided to build summer ‘cottages’ not too far from New York. Cottages, that is, roughly the size of Versailles. The opulent Breakers mansion is worth visiting. Then explore the historic waterfront – packed with sloops and schooners. As evening descends, dine at one of the harbour’s upscale restaurants, savouring seafood delicacies. Waypoint 1 Newport Welcome to old America. The kind of place where the towns weren’t designed around cars but horses, and the harbours have seen everything from pirate ships and whaling vessels to America’s Cup contenders. The coast hugs you like an old friend. It’s glorious, elegant – and exactly how summer should be. By sharing some Members' itineraries, we're helping others unlock their yachts’ full potential, reducing crew turnover and making ownership a more rewarding experience. Country(ies): United States Time zone(s): Winter: EST (UTC-5) Summer: EDT (UTC-4) Currency(ies): United States Dollar (USD) Temperature: February: 4°C (40°F) August: 18°C (64°F) Sunshine: February: 6 hours August: 9 hours Humidity: February: 62% August: 71%

While adherence to classification society Rules is often mandatory, don’t think of these organisations as being there to impose health and safety restrictions and add to an already considerable mound of paperwork. They have their limitations, but they are useful sources of technical knowhow, and their experts can add real value to your build. Home Handbook Building / / Keep it Classy 10 May 2023 Last revised minutes 3 Reading time While adherence to classification society Rules is often mandatory, don’t think of these organisations as being there to impose health and safety restrictions and add to an already considerable mound of paperwork. They have their limitations, but they are useful sources of technical knowhow, and their experts can add real value to your build. minutes 3 Reading time 10 May 2023 Last revised While adherence to classification society Rules is often mandatory, don’t think of these organisations as being there to impose health and safety restrictions and add to an already considerable mound of paperwork. They have their limitations, but they are useful sources of technical knowhow, and their experts can add real value to your build. Classification societies establish and apply standards (Rules) for design, construction, and maintenance of yachts, focusing on technical aspects. Building and keeping a yacht in Class can boost resale value and ensure compliance with Flag State requirements and insurance policies. Classification societies can provide additional consultancy services during builds and refits, assisting with design development. The connection between classification and insurance dates back to the 17th century, with societies like Lloyd's Register providing vessel information to underwriters. The leading classification societies are members of the International Association of Classification Societies (IACS), which aids in developing regulations. Societies have limitations, including their focus on physical aspects and potential reliance on sampling instead of full examinations due to their experience with larger ships. Claims against societies for mistakes during the build or regular surveys can be challenging due to the choice of law, historical links to specific countries, and liability exclusions in the agreement. When choosing a society, consider membership in IACS, acceptance by insurance underwriters, openness to new ideas, and a deep understanding of large yachts. Establish a good working relationship with the society's surveyor, considering them as an integral part of the build team. Classification does not guarantee build quality or vessel maintenance; it primarily focuses on technical compliance. Societies have limitations, including their focus on physical aspects and potential reliance on sampling instead of full examinations due to their experience with larger ships. Claims against societies for mistakes during the build or regular surveys can be challenging due to the choice of law, historical links to specific countries, and liability exclusions in the agreement. When choosing a society, consider membership in IACS, acceptance by insurance underwriters, openness to new ideas, and a deep understanding of large yachts. Establish a good working relationship with the society's surveyor, considering them as an integral part of the build team. Classification does not guarantee build quality or vessel maintenance; it primarily focuses on technical compliance. Classification societies establish and apply standards (Rules) for design, construction, and maintenance of yachts, focusing on technical aspects. Building and keeping a yacht in Class can boost resale value and ensure compliance with Flag State requirements and insurance policies. Classification societies can provide additional consultancy services during builds and refits, assisting with design development. The connection between classification and insurance dates back to the 17th century, with societies like Lloyd's Register providing vessel information to underwriters. The leading classification societies are members of the International Association of Classification Societies (IACS), which aids in developing regulations. Classification societies (sometimes known just as ‘Class’) are privately-organised groups of engineers and surveyors. They are experts in the technical aspects of yacht construction and maintenance. Their principal role is to research, establish and apply standards (known as ‘Rules’) for design, building and maintenance. The Rules are highly detailed, covering the integrity of the hull, machinery and key safety systems. Depending on your yacht’s size, and whether it’s going to be chartered-out, your chosen Flag State, may require the vessel to be built according to Rules, and, on launching, be kept ‘in Class’. Societies also offer additional consultancy services, going beyond basic classification, during builds and refits. Building to Rules and keeping your yacht in Class can boost the resale value whether or not it is chartered. Where must, as a matter of law, be kept in class, then failing to do so may invalidate insurance policies. Even before the build agreement is signed, the society can review the proposed plans, and in particular any novel features or materials. As well as assessing Rule compliance, they can assist with design development – in a relatively cost-effective way, too. CLASS & INSURANCE The connection between classification and insurance goes back a long way. The oldest society, Lloyd's Register , was named after a 17th-century London coffee house that was frequented by merchants, ship owners and insurance underwriters. Keen to encourage patrons to stay longer, coffee house owner, Edward Lloyd, printed and circulated industry news. The customers set up the Society for the Registry of Shipping in 1760, with the aim of recording information about vessel quality, thereby enabling the underwriters to make more informed decisions about risk. The records were listed, rated and classed in the Society’s Register Book. Subscriptions generated by the Register Book paid for surveyors to examine the vessels. Today, the leading 11 societies are all members of the International Association of Classification Societies (IACS) - a non-governmental organization covering over 90% of the world’s shipping tonnage. IACS is a non-governmental organization, which helps the International Maritime Organization to develop regulations. LIMITATIONS Societies have two principal limitations. Firstly, they only consider the physical aspects of the yacht and its equipment, not how they are used. Secondly, because they are more used to examining ships ten times the volume of even the largest yachts, there can be a reliance on sampling rather than full examinations: things can be missed. Classification doesn’t automatically assure build quality or vessel maintenance. LIABILITY Society surveyors are human and make mistakes. An owner might want to claim against a society where there has been a mistake made during the build process. More common are omissions made during the regular surveys, especially where the maintenance of the yacht ‘in Class’ is a reason underpinning a purchase. The latter may be an important route to getting compensation, given that the societies are large organisations with deep pockets, whereas the seller is often just an owning company with no other assets once the vessel is sold. What makes claims against societies difficult is that while commercial parties often automatically choose English law, the societies all have historical links to particular countries, and often insist on the law of their ‘home’ country. Further, there are still no international conventions on this subject, despite some initiatives. The choice of law is normally agreed in the contract, of course, but this may not automatically be respected by certain courts, and such a choice may be meaningless to third party buyer who was not party to original contract for classification services. Societies will, where possible, expressly exclude their own liability in the terms of the agreement with the owner. These attempts have largely been upheld. Amazingly, terms will commonly state, for example, that the society ‘does not warrant the accuracy of any information or advice supplied…’ and ‘…will not be liable for any … act, omission, error, negligence, or … any inaccuracy in any information or advice given’. Indeed, the society may also state if there has been negligence on their part, then they will compensate the owner, but only up to the amount of the society’s fees paid – which will usually be a fraction of the damages sought. CHOICE OF SOCIETY You should choose a society which: Is a member of IACS, Is acceptable to the proposed insurance underwriter, Is receptive to new ideas and solutions, and Really understands large yachts. The last point is particularly important where your build includes novel designs or materials. Much can be at the discretion of the society’s surveyor, so a good working relationship is vital. Think of the surveyor as an integral part of your build team. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Engage a Builder Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Engage a Builder

Home Journeys Western Med / / Classic Côte If Saint-Tropez is a wild party, Porquerolles is the gentle, sun-kissed morning after. Effortlessly beautiful, Porquerolles is what the French Riviera looked like before casinos and boutiques. Notre Dame beach has sugar-soft white sand and crystal-clear turquoise water. The diving’s excellent here. But there are no blinged-up beach clubs, and absolutely no traffic jams - because cars aren’t allowed. Instead, visitors swap Bugattis for bicycles, gliding along sun-dappled paths through pine forests and vineyards that produce some of the finest rosé in existence. It’s the perfect antidote to the excess of the Riviera: luxury served with a side of serenity. Waypoint 7 Île de Porquerolles Once a sleepy fishing village, now the undisputed capital of excess. The harbour’s charming, but prepared to be gawped at by tourists when you're on board. The old town is a maze of cobbled streets, quaint cafés, and markets selling everything from truffle-infused cheese to handmade sandals. Nearby Pampelonne Beach (best reached by tender) is an institution. A place where bronzed bodies recline on perfectly arranged sunbeds while waiters at beach clubs sprint across the sand delivering magnums of Dom Pérignon. If you tire of the glitz, the surrounding countryside offers a retreat into vineyards and rolling hills. Saint-Tropez's not just a destination: it’s a lifestyle. Waypoint 6 Saint-Tropez Home of the most glamorous traffic jam on Earth - the Cannes Film Festival. Best avoided unless you’re part of that circus. The Boulevard de la Croisette is the centrepiece—a sun-drenched promenade lined with high-end boutiques. At one end is the charming Old Port, but large vessels must use Port Pierre Canto at the other end. Le Suquet (the old town) is charming, with cobbled streets, authentic French bistros, and panoramic views. Offshore, the Lérins islands offer an escape from the madness, complete with a fortress that once housed the mysterious Man in the Iron Mask – proving that even in the 17th century, Cannes had an exclusive guest list. Waypoint 5 Cannes Nestled between Nice and Cannes, Antibes has all the glamour of the Riviera but with an old-world charm that doesn’t try too hard. Step ashore at Port Vauban and you’re soon in the stunning medieval Old Town where cobbled streets lead you to chic boutiques. For lovers of culture, the nearby Picasso Museum sits proudly within the Château Grimaldi. Then there’s Cap d’Antibes, a scenic headland where the walking trails offer jaw-dropping views over the Med.If you really want to indulge, Hotel du Cap-Eden-Roc offers a range of stunning bars and restaurants. If you have money and taste, you’ll love Antibes. If you only have money, well, Cannes is just down the road… Waypoint 4 Antibes A place so absurdly beautiful it looks like it was designed by a Hollywood set designer with an unlimited budget. Nestled between Nice and Saint-Jean-Cap-Ferrat, this is where the Riviera dials down the excess of Monaco and swaps it for something altogether more refined. The bay is one of the deepest in the Med. Ashore, pastel-coloured buildings tumble down to the water, and charming little cafés serve seafood so fresh it practically waves at you. Atop Cap Ferrat, Villa Ephrussi de Rothschild is filled with priceless art. Villefranche-sur-Mer is the Riviera’s best-kept secret. A place where wealth merely whispers and never shouts. Waypoint 3 Villefranche-sur-Mer A tiny nation where the world’s wealthiest naturally coalesce. There's an undeniable magic about the place. Both glamorous and ludicrous, and it’s the ultimate playground for those who think a Bugatti is a sensible runabout. One moment, you’re sipping Dom Pérignon '76 at the Café de Paris, the next, you’re strolling through the same tunnel where Ayrton Senna once danced on the edge of disaster. It’s flashy and over-the-top - and that’s precisely the point. Monaco isn’t just a destination. It’s a statement: je suis arrivé. Enjoy some downtime at the Oceanographic Museum and La Collection De Voitures - right by Port Hercule. Waypoint 2 Monaco Known as la Città dei Fiori (City of Flowers), understated Sanremo is where old-school glamour meets a dash of delightful Italian disarray. The streets are lined with faded Belle Époque hotels, while cafés overflow with locals arguing loudly over espresso. Your berth in Portosole Marina is centrally located, with exclusive shopping along Corso Matteotti and the historic Casino di Sanremo within easy walking distance. Enjoy a lazy lunch at the Michelin-starred Paolo e Barbara on via Roma, before visiting Villa Nobel - a museum dedicated to Swedish inventor Alfred Nobel who lived here. Then a luxury spa treatment at the Royal Hotel. or a round at Circolo Golf degli Ulivi, before rejoining your yacht for dinner. Waypoint 1 Sanremo The Riviera awaits. Hairpin bends by the sea, lunches that become dinners, harbours with just enough glamour, speed and mischief to feel faintly irresponsible. Behind the luxurious harboursides lie charming cobbled villages and breath-taking landscapes. What's not to love? By sharing some Members' itineraries, we're helping others unlock their yachts’ full potential, reducing crew turnover and making ownership a more rewarding experience. Country(ies): Italy, Monaco, France Time zone(s): Winter: CET (UTC+1) Summer: CEST (UTC+2) Currency(ies): Euro (EUR) Temperature: February: 11°C (52°F) August: 24°C (75°F) Sunshine: February: 5 hours August: 14 hours Humidity: February: 68% August: 65%

Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team. Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. Home Handbook Building / / A Firm Foundation 10 May 2023 Last revised minutes 5 Reading time Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team . Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. minutes 5 Reading time 10 May 2023 Last revised Many of our Members will already be familiar with the reasoning behind corporate ownership and the use of trusts. If that’s you, then feel free to skip to the next step of building your team . Too many buyers, however, still purchase in their own names. As well as raising privacy concerns, legal owners can be held liable for accidents and regulatory non-compliance. Corporate services aren’t cheap, but it’s a sensible choice when building and owning a large yacht. Companies have a seperate legal personality, which allows companies to buy and sell goods and services like people. Trusts are arrangements where property is held by a trustee for the benefit of a beneficiary, sometimes with the same person as the settlor and beneficiary. Companies and trusts can be used to protect assets, reduce tax exposure, and shield personal wealth. Yachts can be owned through companies to ring-fence liability and protect other assets of the owner. Yachts can still be arrested in cases of accidents, pollution allegations, or unpaid debts. Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner. Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion. The use of nominees can help to protect the identity of real directors and shareholders. Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized. Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures. Lifting the corporate veil may expose individuals involved in fraudulent or tax evasion. The use of nominees can help to protect the identity of real directors and shareholders. Privacy is not guaranteed, as international treaties and conventions may override privacy laws, and trusts aren't always recognized. Offshore jurisdictions offer tax-efficient and legal ways for multinational companies and yacht owners, but careful consideration of jurisdiction is essential for reputation, integrity, costs, rule of law, political stability, and practicalities of winding-up corporate structures. Companies have a seperate legal personality, which allows companies to buy and sell goods and services like people. Trusts are arrangements where property is held by a trustee for the benefit of a beneficiary, sometimes with the same person as the settlor and beneficiary. Companies and trusts can be used to protect assets, reduce tax exposure, and shield personal wealth. Yachts can be owned through companies to ring-fence liability and protect other assets of the owner. Yachts can still be arrested in cases of accidents, pollution allegations, or unpaid debts. Releasing a yacht release from arrest requires payment of the claim or providing acceptable security, often requiring a personal guarantee from the beneficial owner. Companies are said by lawyers to have their own ‘legal personality’. This colourful phrase just means that they are able to buy and sell goods and services in just the same way as a human being. Although corporations were developed as a means to allow entrepreneurs to raise money and conduct business without risking their personal wealth, companies can also be used for non-commercial purposes – as vehicles for asset ownership. TRUSTS Trusts are a rather different concept. They have no such personality. They are simply an arrangement whereby property is handed over by one party (the ‘settlor’) to another (the ‘trustee’) for the benefit of another (the ‘beneficiary’), on the basis that the property will be held and used as the trustee wishes. The settlor and beneficiary can be the same person. Although legal title is actually transferred from the settlor to the trustee, the beneficiary’s rights are recognisable and enforceable by the courts. As with companies, the use of trusts has come along way since their invention: they were first used to protect the property of medieval knights while away on crusade. BENEFITS Now and then, yachts are involved in accidents. Liability could easily exceed the value of the yacht, and, should the owner be held liable, his or her other assets are at risk. More sensible, then, to ring-fence any such source of liability by owning the yacht through a company. Companies and trusts can also be used, quite lawfully, to reduce an individual’s apparent wealth and personal tax exposure, and to protect assets from creditors where the beneficial owner is asked to provide personal guarantees in respect of the financing of his or her commercial activities. With very limited exceptions, yachts must, by law, be registered somewhere. In some cases, including during the build stage. Shipping registers being open to inspection by the public, details of a yacht’s owner are readily available. Most owners just don’t like the idea of journalists – or perhaps even former spouses – knowing what they own. Although the identity of company directors and shareholders is often a matter of public record, many jurisdictions allow directorships and shares to be held in the name of nominees. LIMITATIONS No amount of corporate structing can prevent the arrest of the yacht itself. Where this happens, the yacht is legally prevented from leaving her mooring. Typically, police or customs officers present the yacht with the court papers – this is the process which used to involve the nailing of a writ to the mast. Yachts are often arrested following a collision, an allegation of pollution, or where a good or service has been provided to the yacht without the provider (including crew) having been paid. There is no need for judgment to have been given and there may be little or no warning before the yacht is arrested – potentially leaving the owner in an awkward and embarrassing position in the middle of a busy charter season. The only way to release the yacht from arrest is either to pay the claim or to provide security. Such security may only be acceptable if provided or supported by a large bank. In turn, the bank will require a personal guarantee from the yacht’s beneficial owner. On occasion it may be possible to look behind the company at the individuals involved. This is known as lifting the corporate veil. The laws of certain jurisdictions, for example, state that where it appears that, in the course of winding-up a bankrupt company, transactions have been carried out with the intent to defraud creditors, a court may declare the individuals involved liable. Criminal sanctions can also apply. Creditors here only includes those owed money at the time the transfer was made, excluding future creditors. The burden of proving the necessary intent lies with the creditors. The same principle applies where it looks as if a company was set up to frustrate a court order to freeze assets. The use of nominees only prevents the true identity of directors and shareholders being made available to the public. It is not normally possible to offload liability onto the nominees, and there is likely to be a clause in the agreement to set up the company, obliging the actual directors and shareholders to indemnify the nominees. Privacy cannot be entirely guaranteed in any event. Not unreasonably, international treaties on the exchange of information relating to criminal activities, including tax evasion, can allow require even the strongest privacy laws to be brushed aside. Further, although trusts are usually recognised in common law jurisdictions, and some countries are party to an international convention on the recognition of trusts, known as the Hague Trust Convention, trusts aren’t always recognised. One final drawback of buying through a company is that the laws which automatically protect consumers only applies to people - not to companies. Such laws are of limited value where a bespoke yacht is being built, but consumers will have ambiguous build contract provisions interpreted in their favour. CHOICE OF JURISDICTION Offshore jurisdictions still have a reputation as being sunny places for shady people. In fact, virtually all the world’s leading multinationals use offshore companies and trusts to undertake business in a private, tax-efficient yet entirely legal way. ‘Offshore’ simply means a jurisdiction other the one someone is already resident or domiciled. They certainly don’t need to be far-flung islands – although many are as it can form a lucrative boost to otherwise tourist-dependent economies. In fact, a good example of an offshore centre is the United Kingdom – which was becoming increasingly popular long before Brexit. For yacht owners, the principal advantage of using a respectable, well-known offshore jurisdiction is that there is rarely the need to reinvent the wheel: they are geared up to provide yacht owning structures. As these activities often provide a sizeable proportion of foreign income, their governments make it a priority to make matters simple for those looking for this type of service. It is important to choose the jurisdiction(s) with care, however. No two are the same. There are bad apples in the barrel, especially with regards the integrity of local practitioners. With companies, but more particularly with trusts – where legal title is transferred to a local trustee who may have discretionary powers – there exists opportunities to extract more from their clients than had been expected. Other factors to consider include initial and ongoing costs (including local taxes), international reputation, and the strength of their rule of law – in other words how tough their courts are. Political stability is another important factor, as is the time zone, the exchange controls, and any escape provisions – which allow companies to change jurisdictions while maintaining their legal personality and trusts to be transferred without needing to be rewritten. Finally, the most overlooked aspect is the ease, timeframe and expense of winding-up a corporate structure when it’s no longer needed. Working with a local branch of an international legal or accounting group may provide reassurance, but on the other hand one may end up being steered towards just those places where they happen to have an office. Ideally, guidance in the earliest stages should be sought from an independent, trusted source, capable of providing an impartial, global overview. Reach out to our General Secretary if you need a steer. With the correct ownership structure in place, it's time to build your team . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Build Your Team Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Build Your Team

While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. Home Handbook Managing / / State Yachts 28 June 2010 Last revised minutes 5 Reading time While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. minutes 5 Reading time 28 June 2010 Last revised While discussion about building a new British royal yacht ebbs and flows, it is often forgotten that a significant number of the world’s superyacht fleet already consists of royal and presidential yachts. These vessels occupy a particular place in international maritime law – often acting as floating embassies and extending extravagant hospitality and prestige. And just as diplomats hold special privileges in foreign countries, so do state vessels. Diplomatic privileges grant state yachts immunity from seizure and delay. Immunity is based on negotiated reciprocal agreements and has a legal and political foundation. State yachts represent a nation and seizing them could be seen as a diplomatic insult. Different countries have varying laws regarding immunity for state yachts. The privilege is often restrictive, requiring proof that the yacht is a state yacht and the circumstances justify the immunity. Immunity protects owners from disputes such as unpaid bills. Arrests of state yachts are governed by the laws of the jurisdiction where the yacht is located. Arrests serve to detain the yacht until financial security is provided. The International Convention on Salvage may not apply to state yachts entitled to immunity. Action can be taken against individuals responsible for negligence, even if the yacht is immune. Immunity protects owners from disputes such as unpaid bills. Arrests of state yachts are governed by the laws of the jurisdiction where the yacht is located. Arrests serve to detain the yacht until financial security is provided. The International Convention on Salvage may not apply to state yachts entitled to immunity. Action can be taken against individuals responsible for negligence, even if the yacht is immune. Diplomatic privileges grant state yachts immunity from seizure and delay. Immunity is based on negotiated reciprocal agreements and has a legal and political foundation. State yachts represent a nation and seizing them could be seen as a diplomatic insult. Different countries have varying laws regarding immunity for state yachts. The privilege is often restrictive, requiring proof that the yacht is a state yacht and the circumstances justify the immunity. For yachts, these diplomatic privileges take the form of immunity from seizure and delay. But such immunity is not automatic: it arises only because in the past various governments have reached negotiated, reciprocal agreements. This is important because it means that the immunity has a legal as well as a political foundation. So it is therefore possible to state precisely what the extent of the privilege is in any given set of circumstances. So why have such immunity anyway? The answer is that, like warships, state yachts are the floating embodiment of a particular nation, and to try to ensnare such vessels in foreign legal proceedings could be seen as a slap in the face of a foreign country, and diplomatically embarrassing. To make sure such faux pas do not happen, the treatment of state yachts is enshrined in the national laws of most states. It is a similar concept to the legal sanctity of foreign embassies. LIMITS But a line has to be drawn somewhere with regard to foreign sovereign immunities, to prevent them being taken advantage of. So a distinction is drawn between activities undertaken using vessels which are commercial in nature, and those of a governmental or public nature. For yachts, ‘commercial’ means simply being chartered. While this tenet was enshrined in 1926 in the Brussels Convention on Immunity of State Owned Vessels and later in the 1972 European Convention on State Immunity and the 1982 Law of the Sea Convention, these conventions must still have been enacted into particular countries’ domestic law to have any effect: which means that the commercial/non-commercial principle is not uniformly applied. In the UK, the State Immunity Act 1978 strips immunity even where there is just an intention that the yacht be chartered – therefore encompassing charter positioning passages. In the US, the Foreign Sovereign Immunities Act 1976 allows for state yachts to be seized not only when being used commercially but also to enforce a mortgage on the vessel. In France, the courts have held that a vessel may be seized simply when it is not performing a public act of state – which in reality is most of the time. In most parts of the world, the privilege is what lawyers call ‘restrictive’ in nature – in other words, if you are seeking to rely on the privilege it’s up to you to demonstrate that your yacht is indeed a state yacht and the circumstances justify what you’re seeking to rely on. ARREST Being immune from seizure and delay is, almost literally, a ‘get out of jail free’ card for an owner who disputes a bill, for example. Seizing a yacht is a dramatic and effective method for recovering debts. There is nothing like it in land-based law. Normally, if you were to supply goods or services to a yacht, and weren’t paid, you could only sue the person or company with whom you agreed to deliver the supplies or do the work. Liens cut through contractual matrices. Arrests are governed by the law of the jurisdiction in which the yacht is situated at the time. The yacht’s flag and the nationality of the individual or company seeking redress usually makes no difference. The arresting court can also become the trial court, making it possible to ‘forum shop’ for a country with favourable laws. Bringing an action against a ship is a remedy which has been around since ancient times. It exists because, traditionally, ships were owned by their captains and if anyone who had supplied goods or services to the ship was left unpaid, the captain could sail off, never to be seen again. Some see arrest as a punishment in itself; it isn’t – it’s just a way of detaining the yacht in order to force the owner to provide financial security, which could be in the form of a cash deposit or bank guarantee. Then the yacht is free to leave. Contrary to popular belief, at no time is the yacht actually chained to the dock. The order is served on the yacht and if the captain attempts to leave he or she will be in contempt of court and criminally liable. In the UK, a warrant of arrest will not be issued against a state yacht where, by any convention or treaty, the UK has undertaken to minimise the possibility of arrest until notice has been served on a consular officer of that state. Many countries have made similar ad hoc bilateral agreements not to arrest each other’s state vessels, in spite of any immunity laws allowing for arrest where they are being used commercially. SALVAGE If a state yacht is found to be in need of salvage assistance, the International Convention on Salvage 1989 will not apply if the vessel is entitled to immunity. This means that, unless the state owner consents, it may be impossible to arrest a salvaged yacht if financial security is wanted pending the litigation or arbitration of any salvage claim. COLLISION Where a state yacht has been sailed negligently, perhaps causing a collision, it remains possible to bring an action against the officer in charge at the time personally for negligence, just as it would be in any other situation: individuals cannot normally shelter from immunity afforded to the yacht. CONTRACTS So what can a supplier of goods and services do to ensure that the vital right to arrest is retained? Contracts should always include a ‘law and jurisdiction’ clause, although it is surprising how often this is omitted, even by sophisticated suppliers. It is a simple matter to include an extension to such a clause so that the yacht’s owning company is not entitled to claim any immunity in relation to itself (or any of its assets) under any law or in any jurisdiction in connection with any legal proceedings relating to the agreement. The owner should also be asked to irrevocably agree not to claim – and waive – such immunity. As it is always open to the owner to claim that national laws providing immunity will trump whatever is written in the contract, there is no guarantee that such a clause will be effective, but it is the most any supplier can realistically do. ROYAL YACHTS To be clear, not all yachts owned by royalty will be royal yachts in the context of international law. In those jurisdictions where the royal family is part and parcel of the state itself, it will usually be clear whether or not a royal yacht is a state yacht. The situation becomes less lucid where the royal family has a purely symbolic role: some royal households, while subject to widespread popular support and approval, are in fact constitutionally separate from the states they ‘reign’. COMPANY OWNED Further, some state yachts are owned by private owning companies, perhaps based in popular offshore jurisdictions, usually just to ring-fence the yacht as a source of potential legal liability. Where this is the case, the legal owner will be the owning company, not the royal personality or state, so any immunity would fall away. Given this, it would be preferable for state yachts which are to be chartered to be owned within the traditional company owning structure. When ownership is through such a company, the normal rules regarding whether it is possible to view the individual ‘beneficial’ owner as the actual legal owner will apply. This is known as ‘lifting the corporate veil’. It is usually only possible to reveal the beneficial owner where there has been tax evasion or an intent to defraud creditors – which is hardly likely in the case of state yachts. CONCLUSION While it is worth bearing in mind the immunity that state yachts enjoy, it is important not to lose sight of the fact that their owners are more likely to remain solvent, and will certainly behave after an incident in a manner which could be described, quite literally, as diplomatic. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Engaging a Manager Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Engaging a Manager

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 50 m Length Finest Craft Builder 2004 Build year 498 Gross tonnage Cayman Islands Registry Particulars Manifestation

As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. Home Handbook Employing / / Commission or Kickback? 2 November 2013 Last revised minutes 3 Reading time As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. minutes 3 Reading time 2 November 2013 Last revised As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. T he Bribery Act 2010 in th e UK is considered one of the toughest anti-bribery laws globally, with similar principles found in the US Foreign Corrupt Practices Act. The Act applies extraterritorially, meaning that a crime can be committed even if the transaction occurs outside of the UK. There are four key offences under the Act: bribing, receiving a bribe, bribing a foreign public official, and failing to prevent bribery. Bribing involves offering or promising a financial or other advantage in exchange for improper performance of a function or activity, while receiving a bribe includes requesting or accepting such an advantage. Local practices should be disregarded when determining improperness, unless they are part of the written local law. Hospitality can be considered bribery if it is disproportionately generous, especially in industries focused on luxury. The offence of failing to prevent bribery applies to all commercial organizations, including companies and partnerships operating in the UK. Bribery crimes committed outside the UK can be investigated and prosecuted if there is a "close connection" to the UK, such as being a UK passport holder or ordinarily resident. The Serious Fraud Office (SFO) in the UK handles corruption allegations involving UK nationals or incorporated bodies overseas, and there is international cooperation in investigating and prosecuting bribery and corruption. The United States' Foreign Corrupt Practices Act allows payments to foreign public officials to expedite their duties, even if it violates local laws. Civil actions can also be taken against individuals involved in bribery, and a criminal conviction serves as proof of civil liability. The offence of failing to prevent bribery applies to all commercial organizations, including companies and partnerships operating in the UK. Bribery crimes committed outside the UK can be investigated and prosecuted if there is a "close connection" to the UK, such as being a UK passport holder or ordinarily resident. The Serious Fraud Office (SFO) in the UK handles corruption allegations involving UK nationals or incorporated bodies overseas, and there is international cooperation in investigating and prosecuting bribery and corruption. The United States' Foreign Corrupt Practices Act allows payments to foreign public officials to expedite their duties, even if it violates local laws. Civil actions can also be taken against individuals involved in bribery, and a criminal conviction serves as proof of civil liability. T he Bribery Act 2010 in th e UK is considered one of the toughest anti-bribery laws globally, with similar principles found in the US Foreign Corrupt Practices Act. The Act applies extraterritorially, meaning that a crime can be committed even if the transaction occurs outside of the UK. There are four key offences under the Act: bribing, receiving a bribe, bribing a foreign public official, and failing to prevent bribery. Bribing involves offering or promising a financial or other advantage in exchange for improper performance of a function or activity, while receiving a bribe includes requesting or accepting such an advantage. Local practices should be disregarded when determining improperness, unless they are part of the written local law. Hospitality can be considered bribery if it is disproportionately generous, especially in industries focused on luxury. In the United Kingdom, giving incentives and rewards may be a criminal offence – or not – according to whether it falls foul of the Bribery Act 2010 . This law is widely recognised as the toughest of its kind in the world, but its principles are much the same in the rest of the world, including the United States’ Foreign Corrupt Practices Act. Significantly, under the Bribery Act, a crime may be committed even if the transaction takes place outside of the UK. This was already the effect of a small and little-known piece of anti-terror legislation introduced in 2001, but the globe-trotting aspects of the 2010 Act are clearer and more coherent. COMMISSIONS To be clear, a lot of commission arrangements are perfectly legal – but it’s easy to overstep the mark, and there can be a false assumption that formality means legality. The penalties for getting it wrong include an unusually long prison sentence and unlimited fines. OFFENCES There are four key offences: Bribing Receiving a bribe Bribing a foreign public official, and Failing to prevent bribery Bribing occurs when a person offers, gives, or promises to give, a financial or other advantage to someone else in exchange for ‘improperly’ performing a function or activity. Receiving a bribe is defined as requesting, accepting or agreeing to accept such an advantage. An activity will be ‘improperly’ performed when any expectation of good faith or impartiality has been breached, or when the function has been performed in a way not expected of a person in a position of trust. Helpful, this now clarifies what is expected when a commission is an overt element of any business model – even where this may lead to a reduced commission. GREASING PALMS So what about those instances where greasing palms to get things to happen is just the way things work? The Act states that local practises should be disregarded when deciding on improperness – unless they form part of the written local law. While the UK authorities are alive to the necessity of ‘facilitation payments’, official tolerance relates only to small payments, made by companies with the right bribery policies and procedures in place. HOSPITALITY Hospitality can constitute bribery if it is disproportionately generous. In an industry devoted to luxury, it can be easy for crewmembers to confuse the lifestyle of their wealthy employers with their own – and not think twice about receiving hospitality which, seen from afar, is completely over the top. PREVENTION The offence of failing to prevent bribery applies only to ‘commercial organisations’, but this includes any company or partnership carrying on any business in the UK. Conceivably, this could yacht owning companies managed from the UK. With regard to the first three offences, while crimes committed outside the UK (except on board UK-flagged vessels) are normally beyond the jurisdiction of the courts, this is not the case with bribery. Given its seriousness, it’s one of a unique group of crimes (along with terrorism and war crimes) that the authorities can and will investigate worldwide. All that’s needed is a ‘close connection’ with the UK – including just being a passport-holder or ordinarily resident. INVESTIGATION The UK’s Serious Fraud Office (SFO) acts as the focal point for any allegations of corruption by UK nationals or incorporated bodies overseas, while the City of London Police has an Overseas Anti-Corruption Unit with the specific function of supporting overseas corruption investigations undertaken by the SFO. The idea that prosecuting authorities have tentacles that can reach worldwide is not limited to the UK. As with many areas of the criminal law, most countries’ laws are broadly similar, and both European Union and United Nations conventions provide for international co-operation with regard to both the investigation and prosecution of bribery and corruption. UNITED STATES While the reach of law enforcers in the United States is equally global in nature, however, a slight difference can be seen in their approach, as the Foreign Corrupt Practices Act of 1977 allows payments to be made to foreign public officials to facilitate or expedite their performance of the duties they’re already bound to perform, even if this still violates local laws. So making a payment to an official to speed up a visa application, for example, would be acceptable. CIVIL ACTION In addition to the threat of prosecution, an owner may sue an employee or other agent for any loss – and, while a criminal conviction is not necessary for a civil action, it would be undeniable proof of civil liability. The owner may also be able to withdraw from the contract agreed to by the agent, whether or not he or she brings an action against the agent, and this option may be useful if, for example, the owner has managed to find a better deal elsewhere. CONCLUSION While it might seem that the authorities are coming down rather hard on corruption, it’s not because they are trying to spearhead some kind of moral crusade but simply because corruption distorts rational product and service choices, which can ultimately prevent the cream of the industry from rising to the top, distort markets and threaten economic growth. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Harassment Prevention Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Harassment Prevention

Buying yacht insurance is an annual chore which you, as owner, no doubt leave to your manager or captain. Some larger managers have in-house insurance specialists, but it’s fair to say that it’s often an area that is little understood. Here, we look at the various parties involved and their respective roles. Home Handbook Insuring / / Who's Who 3 January 2023 Last revised minutes 5 Reading time Buying insurance is an annual chore which you, as owner, no doubt leave to your yacht manager or captain. Some larger managers have in-house insurance specialists, but it’s fair to say that it’s often an area that is little understood. Here, we look at the various parties involved and their respective roles. minutes 5 Reading time 3 January 2023 Last revised Buying insurance is an annual chore which you, as owner, no doubt leave to your yacht manager or captain. Some larger managers have in-house insurance specialists, but it’s fair to say that it’s often an area that is little understood. Here, we look at the various parties involved and their respective roles. Large yacht insurance is provided by underwriters: other parties are merely part of the distribution channel. Insurance brokers should act on behalf of the insured - not underwriters - but are paid commission by underwriters. Some intermediaries may mislead clients into believing they are brokers when they are actually agents of underwriters. Other intermediaries may act as brokers during policy inception but switch to being underwriters' claims handlers during claims, leaving owners without the guidance they had expected to receive. Repackaging existing P&I cover to appear as an add-on can mislead clients and inflate costs. Underwriters prioritize profitability and may challenge large claims, causing significant delays and losses to the insured. It is crucial to verify the location and regulation of underwriters to avoid being left without coverage if they become insolvent. Insurance brokers are tightly regulated to prevent conflicts of interest, ensuring they act in the client's best interests. Brokers have a duty to exercise reasonable skill and care, identify the needed insurance, disclose material facts, and obtain suitable cover underwritten by a reputable underwriter. Acting as an unregulated insurance intermediary in the UK is a serious criminal offence; you should check that they're registered with the FCA . Underwriters prioritize profitability and may challenge large claims, causing significant delays and losses to the insured. It is crucial to verify the location and regulation of underwriters to avoid being left without coverage if they become insolvent. Insurance brokers are tightly regulated to prevent conflicts of interest, ensuring they act in the client's best interests. Brokers have a duty to exercise reasonable skill and care, identify the needed insurance, disclose material facts, and obtain suitable cover underwritten by a reputable underwriter. Acting as an unregulated insurance intermediary in the UK is a serious criminal offence; you should check that they're registered with the FCA . Large yacht insurance is provided by underwriters: other parties are merely part of the distribution channel. Insurance brokers should act on behalf of the insured - not underwriters - but are paid commission by underwriters. Some intermediaries may mislead clients into believing they are brokers when they are actually agents of underwriters. Other intermediaries may act as brokers during policy inception but switch to being underwriters' claims handlers during claims, leaving owners without the guidance they had expected to receive. Repackaging existing P&I cover to appear as an add-on can mislead clients and inflate costs. Look for large yacht insurance, and you’ll find all kinds of parties offering it. In fact, it’s only underwriters who provide cover. Everyone else is part of the distribution channel. The term ‘underwriter’ stems from the days when well-heeled individuals, happy to leverage their wealth as collateral, would sign underneath a description of the risk being insured. With some exceptions, you can’t buy cover from underwriters. They use agents to reach the market. Insurance brokers, by contrast, provide a service to those looking for insurance. Brokers act (or should be – they don’t always) in the insured’s interests, even though they are paid commission from underwriters. MARKET PRACTICES One particularly obnoxious practice is to infer that cover is being bought from a broker, whereas, in fact, that party – standing behind a well-marketed brand – is an underwriter’s agent. Another business model to be wary of is that the turncoat, where the intermediary acts as broker at the time of policy inception, but then acts as the underwriter’s claims handler when there’s a claim. The (legal) basis for this is often buried in the small print, but it’s of little help for the owner who, when needing to claim, is left without the guidance which might have been expected. Another unhelpful practice is to divide up and repackage cover so as to appear to add value. For example, third party liability insurance typically covers injury claims from guests – but this doesn’t prevent some from selling guest welfare insurance separately as an add-on. Relative to Hull & Machinery, P&I cover is relatively inexpensive and normally already provides owners with mandatory international cover. And – make no mistake – underwriters are there to turn a profit. They can, and will, challenge large claims, to a final and unappealable conclusion if necessary, in a legal process that can take years, with the insured incurring unrecoverable losses no matter the outcome. One trick is to pay smaller claims quickly and make a song-and-dance of doing so in their marketing materials, public relations and social media, giving the impression that all claims are handled in this way. THE UNDERWRITER Check carefully where the underwriter is based, and who’s regulating them. Should an underwriter become insolvent following a large claim, the owner would almost certainly be left high and dry. For this reason, underwriters based in the United Kingdom and European Union must maintain ‘solvency margins’, to ensure that their assets will cover their potential liabilities. Reinsurance provides further protection. Further afield, however, policyholders should consider just how much of a hit their underwriter could take. Given the expense of holding reserves, and with reinsurance typically accounting for a fair percentage of the premium, some underwriters could be tempted to cut corners. THE BROKER Given that they are paid on a commission basis, inherent potential conflicts of interest are tightly regulated in the UK by the Financial Conduct Authority (FCA). In particular, brokers must act honestly, fairly and in their clients' best interests – and communicate clearly, especially regarding fees and commission. Advice provided must be appropriate for the client and only suitable insurance, and level of cover, must be proposed. GENERAL DUTIES As well as regulatory duties, the law more generally requires brokers to exercise reasonable skill and care (with reference to what one would ordinarily expect from a member of that profession operating within the same market) – plus, there may be a specific contractual duty to source insurance of particular type or standard. OBTAINING COVER Brokers who hold themselves out as dealing or specialising in yacht insurance will owe the insured a duty of care to identify what insurance is needed. While not lawyers, they are expected to have a working knowledge of insurance law, be able to ask their client the right questions, and understand how any exclusion clauses may affect cover. They are under a duty of care to warn the insured of the duty to make a fair presentation to the underwriter, and the separate requirement to disclose material facts. Brokers should also indicate what sort of matters could be considered to be material and ask questions about facts that they know are material but the insured might not think to mention. They must also, when it comes to renewal, go through the same procedure that was carried out at the inception of the policy: they cannot just renew the policy and pick up their commission. While brokers must do everything reasonably possible in order to obtain or renew cover, there is no absolute obligation to do so. Brokers must act with reasonable speed, and obtain multiple quotes, if possible, to make certain that the insured pays no more than necessary. The cover which is obtained must be clear, suitable and meet the insured’s requirements – and has been underwritten by a suitable underwriter(s). ADVISING ON TERMS Crucially for owners of large, permanently-crewed yachts, which are subject to a myriad of regulations, brokers must draw their clients’ attention to any onerous or unusual terms or conditions, so that owners have the opportunity to ensure that they are able to comply with such requirements or, if possible, obtain alternative cover. CLAIMS HANDLING Generally, unless agreed otherwise, brokers must assist clients with making claims. As ever, the broker must act with due skill, care and diligence. Notably (these are issues commonly leading to disputes) the broker must ensure that time limits and notification requirements are complied with. Time limits can be very tight. Policies can also require, for example, a sworn proof of loss to be provided. A whole strategy must be in place for handling claims. OTHER INTERMEDIARIES Do not assume that non-specialist intermediaries such as yacht managers will add value. Some may simply extend chains of communication, increasing the risk of non-payment for non-disclosure of a material fact, while paying the manager’s commission will only increase premiums. Acting as an unregulated intermediary in the UK is a serious criminal offence, carrying a maximum two-year prison term and an unlimited fine for the individuals involved. You can quickly check whether anyone doing so is regulated by looking them up on the FCA's Financial Services Register . BE WARNED Always look beyond the slick websites, social media advertising and event sponsorships, and be clear about the role played about the party(ies) you’re dealing with. Seek written confirmation if you’re in any doubt. Also pay attention to where they’re located, who’s regulating them, and the law and jurisdiction applicable to the policy. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Types of Insurance Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Types of Insurance

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 80 m Length DMS & Co Builder 2006 Build year 1300 Gross tonnage Spain Registry Particulars Example

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Italia srl Builder 2002 Build year 612 Gross tonnage British Virgin Islands Registry Particulars Sample

Building a large, custom yacht is a complex process which must be carefully choreographed. There’re a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Home Handbook Building / / The Build Process 10 May 2023 Last revised minutes 4 Reading time Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. minutes 4 Reading time 10 May 2023 Last revised Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Generally speaking, yachts are far more complex than working vessels of a similar size, and finishes must, of course, be of a far higher standard. Yard cleanliness and orderliness make ensuring this much easier. You’ll have gotten a feel for the builder’s work practices having visited beforehand . Once the build is underway, there’s a lot going on and a lot to go wrong. For steel-hulled yachts, huge plates are cut to shape before being assembled and welded into place. Steps must be taken in precisely the right order. Where the vessel will be classed, welders must be qualified in accordance with the classification society standards. The welds themselves must conform to measurable standards with tolerances measuring less than a millimetre. If it’s not right it must be corrected until it is. It can take a year and half to complete a bare 100-metre hull, during which about 1,000 tonnes of steel will be used. Superstructures are typically made from aluminium – requiring even greater welding skills. They are usually constructed in sections, away from the hull, then bonded together. Larger items of machinery, such as engines and generators, must be installed before superstructure encloses the internal spaces. The project will then typically be moved way from under the gantry cranes of the construction facility, to a fitting-out facility, where the machinery and systems will be fitted. The hull’s surface will be slightly rippled and will need filling and fairing: a skilled and labour-intensive process. The epoxy fillers, and paints covering them, are sensitive to temperature and humidity. Insulation, cable trays and pipework can now be installed – in exactly the right sequence. Interior panels are normally prefabricated by subcontractors, before being brought to the yard for installation. They will normally produce full-scale mock-ups of various interiors which you can check before they are installed. It’s important that the bulkhead and deckhead panels be removeable to allow access as needed for regular system maintenance. It's vital that photographs are taken during construction so that what’s behind the panels can be checked easily. SUPERVISION The builder will employ its own project manager(s), but with so much going on it’s easy to see why your project manager needs to be present at all stages of the build. Your project manager should compile monthly reports showing progress, with photos and detailing how this compares to the agreed time schedule. Your project manager should also know the build agreement inside-out, and must remind you of upcoming decision deadlines in good time. As with any large project, communication is key. ENGAGING CREW More and more crew are brought in as the build nears completion. The build captain is first – and in the case of larger projects may have been engaged at the outset. Where the build is on a more modest scale, the project manager also performs the role of build captain and may be the vessel’s first captain following launch. Build captains perform two roles: firstly they add a helpful seagoing captain’s perspective to the build, and secondly they recruit and oversee other crewmembers. The build captain will need excellent organisational skills, an analytical mindset and be a superb manager and motivator. Next comes the Chief Engineer, who can bring real value right away, followed by other heads of departments, who will be key in recruiting those who report to them – and may already have contacts waiting in the wings. Some hires may have been misjudged and just aren’t the right fit. This is to be expected. Not hiring crew until absolutely necessary can be a false economy. There’s much to be got ready before launch. Aside from completing the build, operational and regulatory procedures need to be established, and if these are rushed they may not be fit for purpose. INSURANCE The build agreement should be clear on when the build no longer bears the risk of damage occurring to the yacht, or the liabilities incurred to third parties. There should be no gaps in cover. Keep in mind, too, that you will need employers’ liability insurance in respect of crew as soon as they are engaged. While insurance brokers owe a legal duty to you, as insured, in reality they can value their commercial relationships with underwriters more. Indeed, some will expressly be your agent at the time of inception, but become the underwriter’s agent once a claim has been made. Be warned, and examine the policies in detail. TRIALS At last, your new yacht is complete and is ready for her first sea trial. You may like to come along – but it’s not going to be the most exciting cruise. Before she goes anywhere, there’s a dock trial. The generators and main engines are started and their cooling systems checked for leaks. Once the captain is satisfied that she is ready, she can head out to sea. Aboard will be representatives from the builder, subcontractors and classification society, as well as your own team. All kinds of objective measurements are made which can be checked against the contractual specification. The trial will take most of the day, or a few days for a large, complex vessel. DELIVERY At last your yacht is ready for formal, legal delivery. There may still be teething problems evident at the time of delivery, which the builder hasn’t had time to correct, but which you’re happy to live with for now. The scope and nature of such works must be formally agreed. The build documentation will have been examined and approved by your lawyer, and will be released to you against receipt of the penultimate payment – the final payment being made upon successful completion of the warranty period. WARRANTY PERIOD Because yachts are, in essence, a matrix of complex systems operating together in a harsh environment, it is inevitable that some systems will fail, or fail to perform as expected. The warranty period should be clearly set out in the build agreement. It is vital for crewmembers to inform the captain, and the captain to inform you and the builder, right away and in writing, of any faults. Documentation and record keeping are key. Keep in mind any notice formalities which must be observed. It's in the builder’s interests to work with you to create a yacht which will serve as a masterpiece – quite literally a shining example of what that yard is able to produce. Finding new clients is expensive and time-consuming. It’s far easier to keep existing clients happy and work towards selling them a larger yacht. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about A Firm Foundation Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about A Firm Foundation