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Superyachts often have a gross tonnage (GT) of 499. So why is this? Well, 500GT is an arbitrary legal cut-off originally meant to separate seagoing trading vessels from smaller craft. Straying over this number triggers stricter international safety, security, and labour regulations. The measurement now helps to shape yacht design prompting clever workarounds like retractable canopies. But crossing that threshold isn't actually as burdensome, or risky, as some assume. Home Handbook Building / / Why 499GT? 19 August 2026 Last revised minutes 4 Reading time Superyachts often have a gross tonnage (GT) of 499. So why is this? Well, 500GT is an arbitrary legal cut-off originally meant to separate seagoing trading vessels from smaller craft. Straying over this number triggers stricter international safety, security, and labour regulations. The measurement now helps to shape yacht design prompting clever workarounds like retractable canopies. But crossing that threshold isn't actually as burdensome, or risky, as some assume. minutes 4 Reading time 19 August 2026 Last revised Superyachts often have a gross tonnage (GT) of 499. So why is this? Well, 500GT is an arbitrary legal cut-off originally meant to separate seagoing trading vessels from smaller craft. Straying over this number triggers stricter international safety, security, and labour regulations. The measurement now helps to shape yacht design prompting clever workarounds like retractable canopies. But crossing that threshold isn't actually as burdensome, or risky, as some assume. Gross tonnage measures enclosed volume, not weight, and has no direct bearing on a yacht's actual size or quality. The 500GT threshold is an arbitrary historical line from 1969 that triggers stricter international safety, security, and crew labour regulations. Naval architects deliberately design yachts to stay under 499GT, sometimes sacrificing better layouts to avoid extra rules, illustrating Goodhart's Law in action. Common workarounds include retractable canopies and hull tumblehome, which reduce "enclosed" volume on paper without shrinking the yacht. Exceeding 500GT isn't as burdensome as owners fear, and the resulting standards can actually protect owners legally, since courts often expect similar standards regardless of tonnage. Common workarounds include retractable canopies and hull tumblehome, which reduce "enclosed" volume on paper without shrinking the yacht. Exceeding 500GT isn't as burdensome as owners fear, and the resulting standards can actually protect owners legally, since courts often expect similar standards regardless of tonnage. Gross tonnage measures enclosed volume, not weight, and has no direct bearing on a yacht's actual size or quality. The 500GT threshold is an arbitrary historical line from 1969 that triggers stricter international safety, security, and crew labour regulations. Naval architects deliberately design yachts to stay under 499GT, sometimes sacrificing better layouts to avoid extra rules, illustrating Goodhart's Law in action. Browse any website listing superyachts for sale, and you’ll notice that a significant proportion of them have a ‘GT’ of 499. And it’s seen as a positive aspect. So, what’s the significance of this vital statistic, and is it actually a standout feature? WHAT GT IS Gran Turismo? No. Gross Tonnage. But, oddly, tonnage that has nothing to do with weight. It's a unitless measure of how much enclosed space is inside the hull and superstructure. You could build a superyacht out of lead, or feathers, and if the relevant interior volumes were the same, the gross tonnage would be the same, too. ‘Tonnage’ is derived from the old English term ‘tun’, meaning a large wooden barrel used for transporting wine, which was used to calculate the volume of trade and so the amount of tax authorities could justifiably extract. Today, GT is calculated through an oddly complex formula set out in international law—but the principle’s the same. WHY 499? Economist Charles Goodhart nailed it in 1975. Goodhart's Law states that when a measure becomes a target, it ceases to be a good measure. He was talking about monetary policy, but GT is an even better example. 499GT is often the aim of designers simply because it’s less than 500GT. Cross the 500 threshold, and if your yacht is chartered-out, then you invite the full weight of the International Safety Management Code, the International Ship and Port Facility Security Code, and considerably beefier obligations under the Maritime Labour Convention 2006. Stay below it, and life is simpler. Less paperwork. Less reliance on shoreside managers. And so, lower operating costs. Or, at least, that’s the aim. And why 500? Well, it’s a number which, when the laws were drawn up in 1969, was considered to mark the rough dividing line between seagoing trading vessels on the one hand, and smaller coasters and fishing boats on the other. No thought was given to superyachts as they were virtually non-existent as we know them today. Ships at that time were mostly built either for trading, ferrying passengers or fighting. Fun didn’t really feature. But we’re still left with this arbitrary number. RULING THE DESIGNER'S RULER Capricious though this Rubicon is, it fundamentally affects how superyachts are designed. As it’s enclosed volume that counts, naval architects are constantly playing with what constitutes an enclosed space. Beach clubs, garages, crew areas, even guest cabins get shuffled, shrunk, or relocated based not on what makes the best yacht, but on what keeps the number under 500. Designers will happily sacrifice a genuinely useful covered terrace for an open one, not because owners prefer getting rained on, but because the alternative pushes them over the line. CUNNING WORKAROUNDS Naval architects have an entire toolkit of tricks at their disposal. Retractable canopies let a yacht offer shade and shelter when at anchor, then fold away before the surveyor arrives, so that on paper the space is open to the sky and doesn't count. Hull shaping and tumblehome (where the topsides curve inward as they rise) can reduce enclosed volume higher up the vessel without visibly shrinking the footprint from the water. None of this is illegal. It is simply a rational response to an irrational threshold. Goodhart would be nodding in resigned approval. GOING OVER 500 What often goes unsaid is that the 500GT line is not the terrifying administrative cliff-edge it's made out to be. Yes, the ISM and ISPS Codes apply. Yes, you'll need a proper Safety Management System, more formal crew certification, and more detailed technical surveys. But let's have some perspective here. The incremental administrative burden of proper safety management documentation is not going to break the bank. Leave that to the crew salary and fuel invoices. The fact is that exceeding 500 gross tonnage can actually help an owner. While the various international conventions are largely avoided when below this figure, they often frame the industry and legal standards to which owners must meet—especially as employers of crew. Taking the Maritime Labour Convention for example, isn't red tape for its own sake. It requires written employment agreements, defined hours of rest and decent accommodation. The standards required in respect of larger vessels are often still the same standards which courts will expect owners of all sizes of superyacht to meet—even if compliance doesn’t require certification. Seeing this as mere paperwork to be avoided can, ironically, leave an owner more exposed, not less. A LITTLE-KNOWN LOOPHOLE This loophole is rarely exploited. The 1969 rules (Regulation 1(3) of Annex I of the International Tonnage Convention 1969 to be precise) allows for vessels with genuinely novel features of their design to have those novel aspects treated differently – and potentially excluded from GT calculations – where applying the letter of the law to something unprecedented would be unreasonable or impractical. Meanwhile, Article 11 of the same convention makes it clear that a tonnage certificate issued by one ship registry must be accepted at face value by all other convention countries. No re-measuring. No dockside arguments. And just as haute couture showcases brave new designs on the catwalk, so superyachts often feature novel features. Extraordinary glass atria. Shape-shifting beach clubs. Transforming decks. Flourishes that may never have existed afloat before. Yet this provision appears to have gone almost entirely unexercised. VOLUME OF EVIDENCE Gross tonnage was never meant to be a game. It was meant to be a simple, honest description of how much cargo a vessel can carry, so that sensible, proportionate rules could follow. Instead, it has led to some of the most brilliant engineering minds available spending their careers creating workaround designs. That's not a criticism. It's rather glorious. Goodhart told us it would happen, and the superyacht industry has proved him right. 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

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

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

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

When buying a superyacht owned by a company (and they almost always are), purchasing the yacht itself as an asset and re-registering it is normally preferable to simply buying the shares in the owning company - despite the apparent simplicity of a share purchase. The fundamental reason is that a share purchase means acquiring the entire company complete with all its liabilities - past, present, future, known and unknown. An asset purchase, meanwhile, allows the buyer to acquire just the yacht whilst leaving most unwanted liabilities behind. Home Handbook Buying / / Buy the Company? 17 June 2026 Last revised minutes 4 Reading time When buying a superyacht owned by a company (and they almost always are), purchasing the yacht itself as an asset and re-registering it is normally preferable to simply buying the shares in the owning company - despite the apparent simplicity of a share purchase. The fundamental reason is that a share purchase means acquiring the entire company complete with all its liabilities - past, present, future, known and unknown. An asset purchase, meanwhile, allows the buyer to acquire just the yacht whilst leaving most unwanted liabilities behind. minutes 4 Reading time 17 June 2026 Last revised When buying a superyacht owned by a company (and they almost always are), purchasing the yacht itself as an asset and re-registering it is normally preferable to simply buying the shares in the owning company - despite the apparent simplicity of a share purchase. The fundamental reason is that a share purchase means acquiring the entire company complete with all its liabilities - past, present, future, known and unknown. An asset purchase, meanwhile, allows the buyer to acquire just the yacht whilst leaving most unwanted liabilities behind. Buying a yacht as an asset is usually safer than buying the yacht owning company’s shares, as it allows the buyer to acquire the asset while leaving behind corporate liabilities . A share purchase transfers the entire company, including all known and unknown liabilities, tax exposures, contractual obligations, and historical risks accumulated before the buyer’s involvement. An asset purchase enables the buyer to start with a fresh ownership structure, registration, financing, insurance, and operational arrangements, giving greater certainty to both buyers and lenders. Even asset purchases are not completely risk-free because maritime liens can attach directly to the yacht and survive a change of ownership, making due diligence essential. An asset purchase enables the buyer to start with a fresh ownership structure, registration, financing, insurance, and operational arrangements, giving greater certainty to both buyers and lenders. Even asset purchases are not completely risk-free because maritime liens can attach directly to the yacht and survive a change of ownership, making due diligence essential. Buying a yacht as an asset is usually safer than buying the yacht owning company’s shares, as it allows the buyer to acquire the asset while leaving behind corporate liabilities . A share purchase transfers the entire company, including all known and unknown liabilities, tax exposures, contractual obligations, and historical risks accumulated before the buyer’s involvement. Buying a superyacht can involve a surprising amount of paperwork and procedures. And possible delays where documents are missing. What a palaver! Surely the solution’s obvious. Just buy the owning company. You’d be transferring just one asset: the share capital. The yacht itself stays exactly where it is, in the same ownership structure, and all the underlying contracts, licences, and arrangements continue undisturbed. There’re no ownership transfer formalities. No requirement to obtain third-party consents. The whole transaction can be completed with little more than a stock transfer form. So simple. So quick. So why not? THE GREAT UNKNOWN Unlike a yacht, a company doesn't just sit there looking magnificent. It has a past. It has signed things, promised things, owed things, and possibly upset people in ways you know nothing about. When you purchase shares in a company, you acquire all that company’s liabilities and obligations, whether past, present, or future, and whether known or unknown. The company has a separate legal personality from its shareholders, so ownership of its assets does not change hands: you simply become the owner of the legal entity that holds them. Perhaps most notably, on a share purchase, the buyer inherits the company's entire tax history – and liabilities. Imagine a yacht operating in the Mediterranean. For years she has been cruising the waters of France, Italy, Spain and Greece. Each jurisdiction has its own VAT rules. The company has taken positions that appeared reasonable at the time. Years later a tax authority disagrees. If you purchased the shares, congratulations. You are now the proud owner of an argument between experts that began before you even knew the yacht existed. MITIGATING EXPOSURE A buyer could attempt to mitigate exposure by requiring extensive warranties and indemnities in the share purchase agreement, or through a price reduction. But such agreements only bind the contracting parties and cannot be enforced against the company's creditors. Breach of warranty claims are costly and time-consuming to enforce, and ultimately worthless if the seller lacks the financial substance to meet the claim – which, as an SPV no longer with any assets, is highly likely. An extensive due diligence exercise could be undertaken, examining accounts, tax filings, charter records, insurance history, etc – but this would be expensive, time-consuming and probably inconclusive. Which is what you’ve been looking to avoid. CLEAR THE DECKS By contrast, with a pure asset purchase, the buyer generally does not take on the seller’s tax or other liabilities. The buyer takes the yacht. The seller keeps the history. The de-registration and re-registration process provides confirmation that any existing registered mortgage has been discharged. The buyer can create a fresh ownership structure with a new company, new registration, new insurance, a new crew, etc. There is no need to negotiate a tax covenant to protect against pre-completion tax liabilities. Also, consider the lender's position. A bank financing a yacht to the tune of tens of millions wants security. A tangible thing. A thing it can arrest and sell if everything goes wrong. The bank does not particularly want exposure to an obscure corporate history involving VAT returns filed by somebody in Croatia three years ago. Asset purchases are cleaner. The lender receives a fresh mortgage, and fresh security documents. Everyone starts from a known position. IMPERFECT PANACEA Under maritime law, liens can always attach directly to the vessel itself – not the owning company. Crew wages. Marina charges. Repair claims. These will survive a change of ownership of the yacht even if you, as purchaser, has had no notice of them. Liens also rank in priority ahead of mortgages, and the holder of the lien also has the right to arrest the vessel - which can prevent it from generating any charter income or even being used. So while buying just the asset is better, it’s far from fool-proof. The buyer's due diligence should specifically investigate whether any liens have arisen from unpaid crew wages, collision damage, salvage claims, or other maritime incidents. And the buyer must take steps to ensure these are cleared before completion. The purchase agreement should require the seller to discharge all maritime liens as a condition of completion. A judicial sale of the ship by court order normally removes any liens from the title, producing a clean asset for the purchaser. IT HAPPENS Buying just the shares can work – and it is quick and easy – but only where the buyer knows and seller and the yacht well enough to be certain there are no hidden liabilities. Indeed, it could be the better option where charters have been agreed. It’d still be preferable to have a personal guarantee in place from the beneficial owner of the selling company. CONCLUSION From the seller's perspective, a share purchase delivers a clean break from the company and its associated liabilities. On completion, all continuing obligations and liabilities remain with the company, and the seller's post-transaction liability is generally limited to agreed warranties, indemnities and covenants in the share purchase agreement. However, what is commercially attractive for the seller is precisely what makes share purchases risky for buyers. For a buyer concerned about the extent of potential liabilities, or the risk of unknown contingent claims, an asset purchase offers the ability to acquire the yacht whilst leaving the corporate liability vehicle behind. The buyer acquires a clean asset, subject only to those liabilities which attach to the yacht itself by operation of law. 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 Brokers' Role Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The Brokers' Role

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

Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. Home Handbook Managing / / Piracy & Protection 16 April 2010 Last revised minutes 4 Reading time Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. minutes 4 Reading time 16 April 2010 Last revised Piracy raises a matrix of legal issues, just at the time when the consideration of these will be the last thing on anyone’s mind. This reinforces the desirability of taking advice in advance and, if necessary, placing a trained and equipped security team on board. For those with real concerns about security, compared with highways, houses and offices, yachts will always be – by far – the most secure location. Piracy is defined as any illegal act of violence, detention, or destruction committed by the crew or passengers of a private vessel against another vessel or persons/property on board, outside any country's territorial waters. Hotspots for piracy include the coasts of Indonesia, Somalia, Bangladesh, Nigeria and some South American countries. Insurance coverage for yachts usually has restrictions on cruising areas, and breaching these restrictions may void coverage . Insurers have a broader definition of piracy than the legal definition, as attacks are more likely to occur within territorial waters. Obtaining up-to-date information on current piracy hotspots is crucial, and insurers and maritime security firms can provide assistance. Maintaining vigilance and employing defence measures such as acoustic defence systems and strong-rooms are recommended for yachts in high-risk areas. The legality of carrying weapons depends on the laws of the flag state (where the yacht is registered) and the port state (where the yacht is located). Some countries allow firearms on board as part of the yacht's equipment, while others prohibit certain weapons entirely. Legal consequences and the use of firearms in self-defence can vary depending on the laws of the flag state, port state, and international criminal law. Recognizing pirates can be challenging, and preemptive action may have legal implications. Self-defence and defence of others must be reasonable and proportional to the perceived threat. Maintaining vigilance and employing defence measures such as acoustic defence systems and strong-rooms are recommended for yachts in high-risk areas. The legality of carrying weapons depends on the laws of the flag state (where the yacht is registered) and the port state (where the yacht is located). Some countries allow firearms on board as part of the yacht's equipment, while others prohibit certain weapons entirely. Legal consequences and the use of firearms in self-defence can vary depending on the laws of the flag state, port state, and international criminal law. Recognizing pirates can be challenging, and preemptive action may have legal implications. Self-defence and defence of others must be reasonable and proportional to the perceived threat. Piracy is defined as any illegal act of violence, detention, or destruction committed by the crew or passengers of a private vessel against another vessel or persons/property on board, outside any country's territorial waters. Hotspots for piracy include the coasts of Indonesia, Somalia, Bangladesh, Nigeria and some South American countries. Insurance coverage for yachts usually has restrictions on cruising areas, and breaching these restrictions may void coverage . Insurers have a broader definition of piracy than the legal definition, as attacks are more likely to occur within territorial waters. Obtaining up-to-date information on current piracy hotspots is crucial, and insurers and maritime security firms can provide assistance. Piracy is defined internationally by the United Nations Convention on the Law of the Sea, Articles 101–103. Although local laws may add to this definition, the crime essentially consists of: Any illegal act of violence, detention, or destruction, Committed for private ends, By the crew or passengers of a private vessel, Against another vessel or against persons or property on board another vessel, Which is outside any country’s territorial waters; or Any act of inciting or intentionally facilitating such an act. HOTSPOTS Attacks are logged on the website of Commercial Crime Services (CCS), a division of the International Chamber of Commerce. Currently, while the principal hotspots are to be found off the coasts of Indonesia, Somalia, Bangladesh and Nigeria, acts have been committed off the coasts of various South American countries and even in the Caribbean. INSURANCE Insurers are usually very strict about where yachts can and cannot cruise while remaining covered. Any breach of these restrictions will allow them to escape paying out in the event of a claim for absolutely anything. Once the owner has decided where he or she wishes to cruise, this must be disclosed to the insurer if it is outside the area permitted in the policy, and additional cover negotiated – the cost of which will reflect any perceived increase in risk. In common with the IMB, the definition of ‘piracy’ used by insurers is generally much wider than that given above. This is fortunate since, statistically, attacks are more likely to occur within a state’s own territorial waters – i.e. within 12 nautical miles of the adjacent shoreline. Although piracy risks are specifically covered by the standard ‘Institute Yacht Clauses (1/11/85)’, which are the most commonly-used first-party insurance terms, the risks should still be discussed with the broker anyway. Where, unusually, the policy is not subject to English law, then it may be prudent to take independent legal advice. INFORMATION Patterns of worldwide piracy fluctuate with the political stability and, to a lesser extent, the economic fortunes of adjacent states. It is imperative to obtain up-to-date advice on where the current trouble spots are. Insurers can help with this, although specialist maritime security firms can often provide more detailed information. It should be noted that the security industry is not well regulated in some countries, and firms’ services vary in quality. DEFENCE Although the advice to all yachts travelling in high-risk areas is to maintain particular vigilance, and defences such as acoustic defence systems, satellite-alert systems and strong-rooms are options, the question most commonly raised is whether weapons are, legally, an option. To decide what’s legal and what’s not, it’s necessary to know which countries’ laws apply to any given situation. One needs to consider both the ‘Flag State’ law and the ‘Port State’ law. The Flag State law is the law of the country where the yacht is registered: it governs what happens on board the yacht, wherever in the world the yacht is located, as if the yacht was a small, floating piece of that country. The Port State law is that of the country in whose territorial waters the yacht is located – not just in or around any particular port. EQUIPMENT To take the example of one of the most popular Flag States, the United Kingdom, weapons may kept on board, but not all types. Under the Firearms Act 1968, as amended, firearms (including shotguns) and associated ammunition normally require a licence for purchase and possession. A firearm and ammunition, however, can be possessed on board a yacht, if it forms part of that yacht’s ‘equipment’, without the need for such a licence. A police permit is still needed to bring the firearm to and from the yacht, and a licence required to purchase the firearm in the first place. Section 5 of the same Act still outlaws some weapons altogether for the general public, including: Automatic and semi-automatic weapons, Pump-action weapons, Pistols, other than flare guns, Rocket launchers, other than those used for line-throwing or signalling, Air guns using gas cartridges, and Pepper sprays, TASER®s, etc. Port States will have their own laws relating to possession and disclosure. Researching and complying with these can be difficult and expert advice is a must. ACTION Clearly, there is no point in having weapons on board unless someone is prepared to use them. Introducing them into the equation might change a confrontation into a shoot-out. Guns in untrained hands are not an option. It is also very difficult to work out in advance what the legal consequences of firing shots might be. Thankfully, this choice can be neatly sidestepped by placing a specialist security team on board just for the necessary passages. Shooting at someone whilst they are on another vessel potentially constitutes an act of violence committed on both vessels. The shooter will therefore be subject to the laws of both Flag States, plus that of the Port State if the shooting occurs within 12 nautical miles of the coast (although this limit may not be respected in all countries). Looking by way of example at the UK criminal law, which is followed in much of the world, the raising of a weapon at a suspected pirate, who in fact wasn’t, could constitute an ‘assault’, i.e. putting someone in fear of violence. Shooting a pirate (or otherwise harming him) could lead to charges of grievous bodily harm, where serious injury is caused. Where the pirate is unintentionally or intentionally killed, manslaughter or murder charges could follow. Obviously, a number of defences could be put forward in response, the most useful of which would be self-defence or the defence of another. The accused would not need to have retreated as far as possible before the act of self-defence. Indeed, an act of self-defence or the defence of another may be pre-emptive, given reasonable apprehension. If the threat of force would have been enough, it may be unreasonable to go ahead and use force. If one person on a yacht is threatened, all are can be seen as having been threatened. The force used in self-defence or in the defence of another must be ‘reasonable’ in the circumstances as the accused saw it. What is reasonable would be up to the jury and difficult to predict. The main practical problem is recognising whether or not the yacht is faced with pirates. Until they raise a weapon in your direction or commit any act of violence against anyone, they are just other seafarers. Attack first, and you risk becoming the pirate. 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 Right to Vanish Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about The Right to Vanish

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

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

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

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Yachts bring employees together in close proximity, for long periods, working under pressure, like no other. Employers have always owed crewmembers various duties of care, but recent British legal developments oblige owners to be proactive in preventing sexual harassment. Prevention is better than cure. While these changes only apply to a minority of yachts and crewmembers, it's a step in the right direction and provides a useful industry benchmark. Home Handbook Employing / / Harassment Prevention 30 April 2024 Last revised minutes 8 Reading time Yachts bring employees together in close proximity, for long periods, working under pressure, like no other. Employers have always owed crewmembers various duties of care, but recent British legal developments oblige owners to be proactive in preventing sexual harassment. Prevention is better than cure. While these changes only apply to a minority of yachts and crewmembers, it's a step in the right direction and provides a useful industry benchmark. minutes 8 Reading time 30 April 2024 Last revised Yachts bring employees together in close proximity, for long periods, working under pressure, like no other. Employers have always owed crewmembers various duties of care, but recent British legal developments oblige owners to be proactive in preventing sexual harassment. Prevention is better than cure. While these changes only apply to a minority of yachts and crewmembers, it's a step in the right direction and provides a useful industry benchmark. Yachts create unique working conditions, bringing employees together closely for extended periods under high-pressure situations, making prevention of sexual harassment crucial. The #MeToo movement exposed systemic issues regarding sexual harassment in the workplace, prompting legal reforms to address these failings. Recent legal developments now oblige certain owners to proactively prevent this type of behaviour, emphasizing prevention over remedy. The UK’s Equality Act 2010 defines sexual harassment and places the burden on employers to demonstrate that they took reasonable steps to prevent it. UK employment law applies to crew based on their employment arrangements and connections to Great Britain, with distinctions between peripatetic and expatriate crew. The Act applies to crew working in or adjacent to Great Britain, regardless of their role or the yacht's size, private or commercial. As from October 2024, all employers must take "reasonable steps" to prevent sexual harassment, with significant penalties for non-compliance. The law provides no clear guidance on what constitutes reasonable steps, leaving employers to adopt a risk-based approach. The Equality & Human Rights Commission offers a seven-step guidance for employers, emphasizing policy development, engagement, risk assessment, reporting, training, complaint handling, and addressing third-party harassment. Creating an inclusive and respectful working environment not only fulfils legal obligations but also enhances crew satisfaction, guest experiences, and mitigates retention issues. The Act applies to crew working in or adjacent to Great Britain, regardless of their role or the yacht's size, private or commercial. As from October 2024, all employers must take "reasonable steps" to prevent sexual harassment, with significant penalties for non-compliance. The law provides no clear guidance on what constitutes reasonable steps, leaving employers to adopt a risk-based approach. The Equality & Human Rights Commission offers a seven-step guidance for employers, emphasizing policy development, engagement, risk assessment, reporting, training, complaint handling, and addressing third-party harassment. Creating an inclusive and respectful working environment not only fulfils legal obligations but also enhances crew satisfaction, guest experiences, and mitigates retention issues. Yachts create unique working conditions, bringing employees together closely for extended periods under high-pressure situations, making prevention of sexual harassment crucial. The #MeToo movement exposed systemic issues regarding sexual harassment in the workplace, prompting legal reforms to address these failings. Recent legal developments now oblige certain owners to proactively prevent this type of behaviour, emphasizing prevention over remedy. The UK’s Equality Act 2010 defines sexual harassment and places the burden on employers to demonstrate that they took reasonable steps to prevent it. UK employment law applies to crew based on their employment arrangements and connections to Great Britain, with distinctions between peripatetic and expatriate crew. It’s hard to believe that the #MeToo movement began way back in October 2017. And it’s by October 2024 that employers will have to abide by a set of new rules aimed at preventing sexual harassment in the workplace. The hashtag exposed not only the staggering scale of the problem but how the law was failing employees at every stage. It’s shameful that it’ll have taken seven years. But here we are. THE PRESENT POSITION The Maritime Labour Convention (applicable only to chartered yachts) already mandates that signatory states should take account of the latest version of the Guidance on eliminating shipboard harassment and bullying jointly published by the International Chamber of Shipping and the International Transport Workers’ Federation. That guidance does contain an example policy on general harassment, but it is so vague as to be almost meaningless. The Equality Act 2010 defines sexual harassment as any unwanted conduct of a sexual nature, which has the purpose or effect of violating dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment. Those on the receiving end can bring an employment tribunal claim against their employer (and/or a court claim against their harasser). It’ll then be for the employer to demonstrate that they took “all reasonable steps” to prevent the harassment. In practice, it’s an uphill task to prove that such steps were taken. THE NEW DUTY The Equality Act 2010 has been amended, so that, from 26 October 2024 onwards, all employers must take “reasonable steps” to prevent sexual harassment of employees in the course of their employment. “Sexual harassment” means being subjecting someone to unwanted conduct of a sexual nature - and what constitutes that is for the tribunal to decide on the facts. Of course, sexual harassment is already outlawed, but employers are now under a positive duty to take reasonable steps to prevent it. An allegation of no such steps having been made, employers and are on the backfoot and must prove that they did indeed take such steps. And the new law is non-specific about from whom the crewmember must be protected. So as well as seeking to avoid harassment from fellow crew, reasonable steps must be taken to prevent crewmembers falling victim to unwanted sexual conduct by, say, charter guests. As well as awarding compensation, an employment tribunal may also apply a further uplift of up to 25% where it’s decided that the employer failed to take reasonable steps. This uplift applies to all the compensation awarded for any harassment (whether sexual or not). If the crewmember succeeds in a claim on multiple instances of various types of harassment, the uplift could have a significant effect. APPLICATION TO CREW Broadly, British employment law applies to crewmembers (including captains) ordinarily working in Great Britain. Visiting crews aren’t usually covered. For those working elsewhere, their employment arrangements are key. The law distinguishes between “peripatetic” crew, working on rotation, whose base is in Great Britain and from where they begin their “tours of duty” (who are covered by British employment law) and “expatriate” crew, who live and work abroad. The latter are unlikely to be covered, unless there’s a “sufficient connection” with Great Britain – just holding a UK passport isn’t enough. Employees who do not fit into the above categories, but who have "equally strong" connections with Great Britain and British employment law, might also be covered. There was found to be a sufficient connection, even where a crewmember was employed by a company based outside the UK, on a vessel which never entered UK waters, merely where her salary was paid into a UK bank account, she accounted to HMRC for tax, and the employment agreement was subject to English law and jurisdiction. More specifically (according to The Equality Act 2010 (Work on Ships and Hovercraft) Regulations 2011 ) the relevant parts of the Equality Act 2010 apply to any crewmember working (wholly or partly) within Great Britain or adjacent waters, where: The yacht is UK-registered and has a homeport in Great Britain, or The yacht is EEA member state-registered, and the crewmember is a citizen of Great Britain or of an EEA or designated state, and the legal relationship of the crewmember's employment is located within Great Britain, or the crewmember retains a sufficiently close link with Great Britain. The relevant parts also apply to any crewmember working outside Great Britain and adjacent waters, where: Where the crewmember is working on a yacht which is UK-registered and has a homeport in Great Britain, and The crewmember is a citizen of Great Britain or of an EEA or designated state, and the legal relationship of the crewmember's employment is located within Great Britain, or the crewmember retains a sufficiently close link with Great Britain. Where the Act applies, the crewmember’s role, and the size or use of the yacht (private or commercial) are irrelevant. And it doesn’t matter whether the contract is temporary or permanent – or even just on an informal, casual basis so long as the crewmember works on a personal basis. So dayworkers would be encompassed, but the employees of subcontractors would not. WHAT MUST BE DONE? The new law provides no steer whatsoever on what reasonable steps must be taken. Taking a risk-based approach, the tribunal would have before it a wealthy employer, employing typically young crewmembers, in a confined space, often working long hours and sometimes attending to guests whose inhibitions may have been relaxed by alcohol. So the tribunal’s expectations may be very high. Onboard cultures take time to change, and new policies take time to bed-in, so the time to start taking meaningful, tailored action is now. Helpfully, the Equality & Human Rights Commission has produced some guidance. It’s not definitive, but an employment tribunal could use it as a starting point when considering what steps should have been taken. The seven-step guidance can be summarised, and adapted for owners and managers, as follows. Remember that record-keeping is essential. Step 1: Develop an Effective Policy The policy should state that: All crewmembers are in need of protection, and are subject to and protected by the policy, Sexual harassment is unlawful and will not be tolerated, Harassment or victimisation is likely to lead to disciplinary action up to and including dismissal, and Aggravating factors, such as abuse of power over a more junior colleague, will be taken into account in deciding what disciplinary action will be taken. The policy should also: Define sexual harassment and provide clear examples of it - relevant to the environment of a professionally-crewed yacht, Include an effective procedure for receiving and responding to complaints of harassment, and Provide a commitment to review the policy at regular intervals and to monitor its effectiveness. The policy should go on to address third-party harassment, explaining clearly: That third-party harassment can result in legal liability on the part of the perpetrator and employer, That it will not be tolerated, That crewmembers are encouraged to report it, What steps will be taken to prevent it, and What steps will be taken to remedy a complaint and prevent it from happening again. Step 2: Engage Your Crew Conduct regular crew interviews, anonymous surveys and exit interviews. Captain, manager and the owner’s representative should have known open-door policies. Make sure that all crewmembers are verifiably aware of: How they can report sexual harassment Your sexual harassment policy, and The consequences of breaching the policy. Step 3: Assess & Reduce Risks While many of these will be obvious, you should consider and record factors that might increase the likelihood of sexual harassment and the steps that can be taken to minimise them, such as: Where are the power imbalances? Is there job insecurity for a particular group or role? Are crewmembers working alone? Are guests drinking significant amounts of alcohol? Which crewmembers have guest-facing duties? Is there a lack of diversity in your workforce? Step 4: Reporting Implement a reporting system (an online or independent telephone-based service) that allows crewmembers to raise an issue (anonymously or not). Explain clearly to all crewmembers: What is considered acceptable behaviour, How to recognise sexual harassment, and What to do if they experience or witness it. Step 5: Training Crewmembers should be trained on: What sexual harassment in the workplace looks like, What to do if they experience it, How to handle any complaints of harassment, and How to address third-party harassment from guests, suppliers, etc. Step 6: Actioning a Complaint Act immediately to resolve the complaint, taking into account how the crewmember wants it to be resolved. Respect the confidentiality of all parties. Protect the complainant from ongoing harassment or being victimised or harassed further during an investigation. If a crewmember makes a complaint of harassment that may be a criminal offence, you should speak to the individual about whether they want to report the matter. Only use confidentiality agreements where it is lawful, necessary and appropriate to do so. Always communicate the outcome of the complaint to the complainant in a timely manner. Step 7: Dealing with Third Parties Harassment by a third party, such as a guest or supplier’s employee, should be treated just as seriously as that by a colleague. Employers should take steps to prevent this type of harassment, including putting reporting mechanisms in place or assessing high-risk workplaces where staff might be left alone with guests. THE UPSIDES Owners must not see this change in the law as making life more difficult for them and their captains and managers. (Lack of) crew retention is a thorny, ongoing and expensive issue. Social media groups allow crew (anonymously) to name and shame poorly-managed yachts where unacceptable behaviour goes unchecked. In turn, such yachts will struggle to hire good quality crew to replace those who’ve had enough. Sexual harassment can ferment a toxic onboard atmosphere. By contrast, an inclusive and respectful working environment leads to happier crew and better owner and guest experiences. 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 Oh Referee! Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Oh Referee!

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 37 m Length Finest Craft Builder 2011 Build year 156 Gross tonnage Cayman Islands Registry Particulars Type

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%

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

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

Most large yachts are bought and sold on the basis of the MYBA MOA. While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. Home Handbook Selling / / Preparing the Paperwork 29 January 2025 Last revised minutes 9 Reading time Most large yachts are bought and sold on the basis of the MYBA MOA . While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities, and ensure a smooth transaction? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. minutes 9 Reading time 29 January 2025 Last revised Most large yachts are bought and sold on the basis of the MYBA MOA . While the mechanics of the sale process is dealt with in that document, there’s one glaring omission: what documents does the seller need to produce to prove ownership and liabilities, and ensure a smooth transaction? As mere paperwork, such matters are often only negotiated once the MOA has been agreed, leaving scope for an otherwise viable deal to falter. Consider what’s likely to be requested at the outset and prepare accordingly. Clause 18 of the MOA requires "Addendum One" documents, but no such addendum is included. Essential documents are needed for re-registration and proving title, without which the vessel could lose value. Missing corporate authorities or powers of attorney could invalidate the sale. Documents may need specific authentication to be accepted by the flag state. Seller’s documents are crucial for proving ownership and regulatory compliance. Legal professionals have standard expectations for required documents, beyond outdated MYBA lists. Proper planning is needed before the MOA is agreed to ensure all documents are available. Sale documents fall into six categories, which are considered in detail below. Seller’s documents are crucial for proving ownership and regulatory compliance. Legal professionals have standard expectations for required documents, beyond outdated MYBA lists. Proper planning is needed before the MOA is agreed to ensure all documents are available. Sale documents fall into six categories, which are considered in detail below. Clause 18 of the MOA requires "Addendum One" documents, but no such addendum is included. Essential documents are needed for re-registration and proving title, without which the vessel could lose value. Missing corporate authorities or powers of attorney could invalidate the sale. Documents may need specific authentication to be accepted by the flag state. Unhelpfully, Clause 18 of the MOA simply sets out that the “Addendum One” documents must be provided by the seller, yet the MOA doesn’t come with Addendum One – or any addenda for that matter. Certain documents will be needed for re-registration and for proving title – without which the vessel may be worth less or even worthless. The sale itself could be invalidated where the correct corporate authorities and powers of attorney aren’t in place. And such documents may need to be authenticated in a particular way(s) in order to be accepted by the vessel’s new or existing flag state. The seller’s documents are so much more than mere paperwork: they help prove ownership, and are evidence that the vessel complies with certain regulations. They’re fundamental, not a formality. Most lawyers involved in yacht sale and purchase will have their own standard document setting out what they expect to see when representing the buyer. At some point, MYBA has produced it own rather meagre list, versions of which are still doing the rounds years later. It’s best to think about what’ll be asked for, and who has possession of these (or can provide them) even before the MOA is agreed. Assuming the vessel is owned through a company, the paperwork can be divided into six broad categories: Seller due diligence, proving that the company exists and has the capacity to own and sell the vessel; Beneficial owner due diligence, confirming identity and providing a personal guarantee; Seller corporate documents, resolving to sell and appointing attorneys; Asset due diligence, demonstrating provenance and conformity with safety regulations; Liability due diligence, showing that those would could have a claim against the vessel do not; and Sale process documents, which will show that the sale took place, when and where. Let’s look at each group in further detail. SELLER DUE DILIGENCE A Certificate of Incorporation , Memorandum of Association and Articles of Association , in respect of the selling company (including any amendments) are needed to verify that the seller is the legally-registered entity it appears to be, which actually has the authority to own and sell the asset. This may sound obvious, but companies can only do what they’re empowered to do. A recent Certificate of Incumbency , or equivalent certificate, is important in verifying the current shareholders and directors of the seller, as well as confirming that the seller is in good standing and no action is being taken against them. A Certificate of Good Standing , or equivalent certificate, is also needed from the seller's registry to certify that they are in good standing with that registry. These documents are necessary fundamental to ensuring that the buyer is not at risk of fraud. BENEFICIAL OWNER DUE DILIGENCE A Personal Guarantee & Indemnity , whether on standard MYBA terms or otherwise, from the yacht’s beneficial owner, goes a long way to providing additional security for the buyer in case the seller is unable to fulfil its obligations under the sale agreement. The seller, after all, is almost certainly an offshore company with no assets to claim against other than the vessel which has just been sold. The guarantee should make provision for private arbitration so that, in the event of a dispute, matters aren’t settled in the public eye. Up-to-date personal identity documents are also useful in making sure that whoever signs the guarantee is who they claim to be. It should be noted that not all beneficial owners are happy to provide these documents. Some take the view that all their assets are owned through companies with which they don’t want to have any involvement. If you don’t want to agree to provide these to the seller, that’s your prerogative. This may or may not be a deal-breaker for the buyer. SELLER CORPORATE DOCUMENTS As with any large transaction undertaken by a company, the seller needs to produce written Resolutions , signed by someone with the requisite authority, confirming ownership, approving the sale, and authorising representatives to act on behalf of the company in respect of the completion of the sale (such attending on board at completion, and signing the sale documents). For the sake of certainty, Powers of Attorney are also needed to give the individuals the powers which the company has resolved to given them. ASSET DUE DILIGENCE It doesn’t provide conclusive proof, but the Certificate of Registry does help to prove ownership. The Builder’s Certificate shows who the builder was (yard pedigree being an important component of value) as well as it’s specification (which is vital when establishing what regulations will apply and establishing whether it can be chartered). Providing all the previous Bills of Sale will establish a chain of ownership transferal, extending back to its launch, which helps to confirm current ownership, as well as being documents which a fraudster would struggle to produce. The yacht will be subject to various regulations and all the relevant safety and convention certificates must be obtained well in advance of the sale so that the buyer knows that the yacht is capable of satisfying these rules. LIABILITY DUE DILIGENCE Debts incurred by an owner, in respect of their yacht, can be enforced against that yacht (as well as that owner) even after it’s been sold to an unsuspecting buyer. So a recent Transcript of Register will show that the vessel is free from any registered liens or encumbrances and is still solely owned by the seller. It’s also important to obtain a Manager’s Letter (if a yacht manager has been engaged) and a Captain’s Letter , confirming that the seller has no liabilities to the manager, or captain, or any third parties, and that the yacht has not been involved in any incidents or accidents since the pre-sale condition survey. Crewmembers’ Letters will confirm that each crewmember has been paid everything owed to them. And where the yacht is being sold as having a tax-paid status, evidence of this must be prepared – allowing sufficient time for the buyer to take advice from a local tax specialist. SALE PROCESS DOCUMENTS A Completion Timetable , which lists all parties involved in the completion of the sale, their contact details, and the necessary steps to be taken during and after completion, is essential to ensure that all parties are aware of the steps required to complete the sale and that they are well-coordinated. The Bill of Sale , signed by the seller, declares that the vessel is free from all debts, claims, liens, and encumbrances and transfers ownership to the buyer. This document is necessary to establish transfer of ownership, and is vital for re-registration in the buyer’s name. As the time and location of the transfer of ownership may have tax implications, a Protocol of Delivery & Acceptance , in an agreed format, must be agreed. As a formal payment request, the seller’s Commercial Invoice is essential for bookkeeping and provides customs authorities with essential information regarding the transaction. Finally, the seller must produce a Letter of Undertaking that the yacht will be deleted from the current ship registry soon after the sale. Deletion isn’t free and involves professional time which the seller will have to pay for. Feel free to contact us for further guidance. 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 Document Authentication Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Document Authentication

Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. Home Handbook Chartering Out / / Difficult Guests 3 October 2017 Last revised minutes 3 Reading time Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. minutes 3 Reading time 3 October 2017 Last revised Just because charterer guests have paid a great deal of money for the exclusive use of a superyacht, this does not mean that he (or she) has the right to do with the boat and crew as he pleases. A Member recently sought advice with regard to redress following a charter during which guests behaved in a way which was at best depraved – and at worst illegal. In the absence of an agreement stating otherwise, the broker marketing the yacht is considered the owner's agent and must act in the owner's best interests. Once the broker books the charter, the owner is bound by the charter agreement and must provide the yacht to the charterer. The terms of the charter agreement are often based on the MYBA Charter Agreement, which allows the owner to back out only in exceptional circumstances and with financial consequences. The captain is required by law to refuse illegal instructions from the charterer, but there are other unsavory or immoral actions that may not be illegal. The MYBA form explicitly prohibits certain behaviors, such as causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Any breach of the charter agreement may entitle the owner to terminate the contract immediately and claim damages. The captain must raise issues with the charterer before the owner can terminate the contract, according to the MYBA Charter Agreement. Despite the challenges, chartering can help offset the costs of owning large yachts with the right guidance and support. The MYBA form explicitly prohibits certain behaviors, such as causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Any breach of the charter agreement may entitle the owner to terminate the contract immediately and claim damages. The captain must raise issues with the charterer before the owner can terminate the contract, according to the MYBA Charter Agreement. Despite the challenges, chartering can help offset the costs of owning large yachts with the right guidance and support. In the absence of an agreement stating otherwise, the broker marketing the yacht is considered the owner's agent and must act in the owner's best interests. Once the broker books the charter, the owner is bound by the charter agreement and must provide the yacht to the charterer. The terms of the charter agreement are often based on the MYBA Charter Agreement, which allows the owner to back out only in exceptional circumstances and with financial consequences. The captain is required by law to refuse illegal instructions from the charterer, but there are other unsavory or immoral actions that may not be illegal. Had the owner known who the charterer was, he would have never have agreed. The charter broker was aware of the charterer’s reputation but remained silent until just before the start of the charter. In the absence of agreement to the contrary, the broker marketing the yacht on behalf of the owner will often be, in law, the owner’s agent. As such, the broker must perform with the appropriate care and skill, and not allow any conflict between personal interests and those of the principal. By booking a charter with someone known to be unsuitable, it could be said that the broker wasn’t careful and just wanted the commission. THE AGREEMENT Once the broker has booked the charter, however, the owner will have been bound by the charter agreement, and is bound to provide his yacht to the charterer. The terms will have been set out in the charter agreement. The most common terms are those published by the Mediterranean Yacht Brokers Association (‘MYBA’), which have also been adopted by the American Yacht Charter Association. The MYBA Charter Agreement only allows the owner to back out as a result of circumstances beyond his control, on pain of reimbursing the owner plus an extra 50%. EDGY BEHAVIOUR While, subject to the charter agreement, the yacht is the charterer’s to do with as he pleases, the captain is obliged by law to refuse to comply with illegal instructions. However, there are many things a charterer may do which, while unsavoury or immoral, are not illegal. The MYBA form therefore expressly bans, for example, behaviour causing nuisance or disrepute, commercial photo shoots, and harassment of crewmembers. Member’s Experience: “ I have been chartering my yachts for more than 15 years and have maintained an excellent relationship with brokers and charterers. In fact, my yachts are considered some of the most successful yachts on the charter market. What has occurred is certainly an aberration and not to be confused with the excellent work the broker community has done these many years. ” Generally, any breach may allow the owner to treat the charter as having come to an end immediately and claim damages, or just claim damages afterwards, depending on how serious the breach is. But the owner must have suffered some sort of actual loss as a result of the breach: an upset crew may not be enough. RAISING ISSUES The MYBA Charter Agreement specifically requires the captain to raise issues with the charterer first, before the owner has a chance to terminate the contract. A failure to do this could arguably be seen as a waiver of the owner’s rights, and owners may wish to amend such standard form contracts. The Member was at pains to point out that these circumstances are unusual, commenting, “I have been chartering my yachts for more than 15 years and have maintained an excellent relationship with brokers and charterers. In fact, my yachts are considered some of the most successful yachts on the charter market. What has occurred is certainly an aberration and not to be confused with the excellent work the broker community has done these many years.” DON’T BE PUT OFF For all the pitfalls and hurdles, chartering can substantially offset the costs associated with the ownership of large yachts – with the right guidance and support. 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 How to Charter Out Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about How to Charter Out

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

Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Home Handbook Managing / / Limiting Liability 26 February 2011 Last revised minutes 5 Reading time Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. minutes 5 Reading time 26 February 2011 Last revised Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. Even though yachts tend to be the only asset of an offshore owning company, it is possible, after a serious incident, for the individual ‘beneficial’ owner to be seen as the legal owner. This means that all the beneficial owner’s other assets are at risk. The need for effective insurance against liabilities to third parties, often known as Protection & Indemnity (‘P&I’) insurance, is therefore all the more important. Fortunately, throughout much of the world, the law gives owners the opportunity to restrict their liability. This is for two reasons. Firstly, insurers are more comfortable giving cover if they know what their maximum pay-out could be. Secondly, it is normally government policy to encourage trade. The owners of trading ships are more likely to put to sea if they know what their maximum liability could be. As an English judge recently put it, a ship owner might be prepared to lose his shirt, but not his entire wardrobe. As far as limitation is concerned, the law does not distinguish between trading ships and yachts, and, even though yachts are usually worth much more than similar-sized trading ships, the limitation figure will still be the same. CONVENTIONS But with the appropriate insurance in place, why should the owner need to even think about limitation? The answer is that the international conventions providing the limitation require certain standards of behaviour to be met before granting this invaluable right. That way, it is hoped, the sea is made a safer place for everyone. To understand how the opportunity to limit can slip through the owner’s fingers, it is necessary to look a little more closely at the international rules. It used to be that an owner could give up his ship to a claimant and walk away. As the ship would have been the beneficial owner’s largest asset, this was as much as a claimant could sensibly hope for anyway. This principal survives in Italy, the United States and parts of South America, but in most other countries the tonnage of the yacht will determine the owner’s limit in purely financial terms. A few nations still have no limitation regime whatsoever. EXAMPLE For example, a 35-metre yacht, with a gross tonnage of 120, negligently rams a cargo ship at night. Neither sinks, although the ship requires repairs costing £500,000. A further £500,000 of cargo is damaged, and the time spent carrying out repairs costs the owner another £500,000 in lost business. The yacht owner’s total liability in the UK would be just £650,000 approximately, not £1,500,000. The exact figure is determined using a basket of major currencies, and therefore changes daily. Most countries are party to either the 1957 or 1976 Limitation Conventions. There are subtle but vital differences between the two. The 1957 Convention contains a lower limitation figure, but no limitation is allowed where an incident was the owner’s fault or was the result of something the owner knew about. The 1976 Convention sets a higher figure, but the right to limit will only be lost where the owner did (or failed to do) something with the actual intention of causing loss, or not caring whether or not loss will be caused. Whether or not ‘owner’ here refers to the beneficial owner who chooses to skipper his own yacht, will depend on how transparent the owning company will be to the courts concerned. CHARTERER & MANAGER Aside from the owner, the 1957 Convention allows a charterer or manager, and the captain, crew and any other employees, to limit liability. The 1976 Convention adds salvors and insurers to that list. Broadly, both Conventions limit claims for loss of life or personal injury to any person carried on board, loss of or damage to property, liabilities for dealing with a wrecked or abandoned yacht, and the infringement of any non-contractual rights. The Convention limits do not apply to payments to salvors, or claims by the captain, crew or any of the owner’s employees where the law, or the employment contact itself, does not limit liability. Each Convention has lower limits for property claims than for injury or loss of life. FUND Under the Conventions, where the owner could benefit from limitation, a fund can be set up with a court, or other competent authority. The owner can then make a deposit or present a guarantee of no more than the limitation amount. The setting up of the fund is not a prerequisite to limitation, but will help prevent the yacht being detained in future over the same incident, which would require the security to be provided anyway prior to release, seriously disrupting any charter. The owner’s other assets are also placed out of the reach. This is particularly important where a court considers the owner to mean the beneficial owner. Where the yacht has been detained as security for a claim before a fund is established, it will have to be released. JURISDICTION Of course, any Convention will only be as effective as the law implementing it allows. Details, even the limits themselves and those entitled to them, can vary, as countries embroider the Conventions with their own unique thinking. A claim may be subject to a number of possible jurisdictions, each applying different Conventions in different ways. What’s more, each jurisdiction applies it’s own rules in deciding whether or not their courts can hear a claim, and if so whether their own law should apply. Jurisdiction can be founded by an owner, by bringing a pre-emptive action, in a jurisdiction with a favourably low limitation. Otherwise, there is a risk that an aggrieved party may arrest the yacht in a less favourable jurisdiction, presenting a vague case at that stage, leading to the case being later tried in those courts. Jurisdictional arguments are highly complex and an adventure playground for unscrupulous lawyers looking to rack up large bills! Lawyers have also been known to contrive to keep the business in their own courts, even where this is not in the owner’s best interest. INSURANCE Insurance policies normally state that where the assured would have been entitled to limit liability, but failed, unreasonably, to take the necessary steps to do so, the insurers’ liability will not exceed what would have been the limitation figure. This implies that there is an obligation to ensure, if possible, that the claim is subject to a jurisdiction with a relatively low limitation figure. What’s more, the burden of proving that any failure to limit is not unreasonable often rests with the assured. The assured is also normally under a separate obligation to obtain the necessary legal advice and assistance, as and when required. ADVICE The important point is for owners (or their managers) to seek advice promptly in the event of an incident, in order for the jurisdiction to be established where the limitation is lowest. At the outset, a trusted lawyer in a reputable jurisdiction must be instructed, with the guidance and consent of the insurer, in order to work out a strategy for minimising liability. Other local lawyers in the most favourable jurisdiction can then be appointed. The insurers will have a network of reliable lawyers covering most maritime jurisdictions. Liaising with insurers, from the moment an incident occurs, will bring the insurers’ considerable expertise to bear and prevent the insurer from later claiming that the assured failed to do everything possible to limit liability. As well as being a source of unrivalled pleasure and prestige, yacht ownership also carries with it certain responsibilities. As long as owners appreciate the importance of taking timely advice, from a reputable source, and of liaising closely with their insurers, they can rest assured that they have done everything possible to limit any liability. 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 Piracy & Protection Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Piracy & Protection

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 22 m Length Placeholder Yards Builder 2005 Build year 56 Gross tonnage British Virgin Islands Registry Particulars Innovation

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Home Journeys North Atlantic / / Paradise Found Cruising northeast, we soon reach Hamilton, Bermuda's vibrant capital, where colonial charm collides with commerce and cocktails. Rows of pastel buildings with white stepped roofs gleam like they’ve been freshly iced, and everything seems annoyingly neat. Stroll along Front Street, lined with high-end boutiques, art galleries, and charming cafés. Visit the Bermuda Underwater Exploration Institute to delve into the island's maritime history. In the evening, dine at one of Hamilton's acclaimed restaurants, savouring dishes that blend local flavours with international flair. Waypoint 7 Hamilton Granaway Deep is a serene anchorage just a stone's throw from Hamilton. Occasional Bermudian fisherman glide over it as if they're skating on blue glass. Beneath them? A submarine landscape that’s like another world. Despite the name, it’s not particularly deep. And if diving’s not your thing, it’s time to get the toys out and spend the day exploring the surrounding waters by kayak or paddleboard. Beyond, lush shores stand before old colonial houses. Even the water here is quieter. More dignified. Waypoint 6 Granaway Deep At the far western tip of Bermuda sits the Royal Naval Dockyard. Great slabs of limestone. Bastions. Storehouses. Walls thick enough to repel cannon fire. Power in masonry form. Yet it has not attempted to erase its past. You feel it in the stone beneath your shoes. Wander through the old Commissioner’s House and you’re met with maritime history presented without fuss or gimmickry. It’s not a theme park; it’s a reminder that Britain once ruled the waves and built accordingly. A place of martial history softened by sea breezes and Bermudian charm. Waypoint 5 Royal Naval Dockyard Surrounding reefs may make this suitable for your tender only. But it’ll be worth it. Mangroves fringe the edges, limestone outcrops glow honey-gold in the late afternoon, and the breeze carries just enough salt to remind you that beyond the reef lies the full Atlantic — but here, inside the embrace of the harbour, all is civility. Perched atop a nearby ridge, Fort Scaur is a masterpiece of military paranoia — all stone ramparts, dry moats, and gun emplacements. Strategically, it was meant to repel the Americans. Today, it mostly repels joggers, because the hill is quite steep and there’s no café at the top. Waypoint 4 Ely’s Harbour There are beaches. And then there’s Horseshoe Bay. First, the sand. Not a shade of municipal beige, but a blushing, self-confident pink. Formed from ancient coral, it squeaks underfoot. Then the water. It begins in translucent gin at the shoreline and deepens into sapphire further out, where the Atlantic rolls in with just enough muscle to remind you this isn’t a paddling pool. Yes, cruise passengers arrive in cheerful battalions - but wander a few minutes along the curve of the bay and you’ll find pockets of solitude where the only soundtrack is wind, surf, and the faint clink of ice in a well-made drink. Waypoint 3 Horseshoe Bay Next we sail to Castle Harbour, tucked away on the eastern side of the island. Drop anchor in gin-clear waters, surrounded by lush greenery and the occasional curious turtle – and spend the day snorkelling among vibrant coral reefs. And then there are the castles - squatting on rocky islets like ancient sentinels. King’s Castle, Devonshire Redoubt, Charles Island… the names alone sound like they should be defended by men in feathered hats holding muskets. No hordes of tourists here: just vast swathes of aquamarine water and the odd boat wafting past as if it has nowhere important to be. Waypoint 2 Castle Harbour Begin your journey in St. George's, a UNESCO World Heritage Site that oozes colonial charm. Dock at Penno's Wharf, then wander through narrow lanes lined with pastel-hued buildings, each whispering tales of pirates and privateers. Dine at a local tavern, sampling Bermuda's famed fish chowder, spiced with a dash of sherry pepper sauce. In the harbour, the water is so blue it looks digitally enhanced, while Fort St Catherine broods on the headland like it’s still waiting for the Spanish to show up. It’s Britain abroad, but with better weather and more colour. The vide is one of sleepy elegance. Waypoint 1 St George’s Bermuda is a speck of Britishness, drifting in the Atlantic just two hours east of North Carolina. The beaches are pink, the shorts are red, and the rum is dark. Yet it's not part of the Caribbean. And while it looks from afar like one landmass, it's made up of 181 islands. Discovered by humankind in 1505, it has a rich history. 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): Bermuda (British Overseas Territory) Time zone(s): Winter: ADT (UTC-4) Summer: AST (UTC-3) Currency(ies): Bermudian Dollar (BMD) Temperature: February: 18°C (64°F) August: 28°C (82°F) Sunshine: February: 6 hours August: 9 hours Humidity: February: 73% August: 79%

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 48 m Length DMS & Co Builder 2003 Build year 420 Gross tonnage British Virgin Islands Registry Particulars Future

Superyacht owners have a collective worth greater than the annual GDP of Sweden. They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. Home About Advertise / / A Wealth of Opportunity The global fleet over 30 metres in length consisted of 5,396 superyachts in operation at the start of 2022 ... The total average final asking price for all used yachts sold, went up in 2021 to €11.8 million. The State of Yachting 2022 REACH THE GLOBAL ELITE Get In Touch Our Members are, by definition, some of the wealthiest people in the world. Working on the widely-accepted Ten Percent Rule, large yacht owners are together worth €637bn.* Which is slightly more than the annual GDP of, say, Sweden.* They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. *Sources: SuperYacht Times, The State of Yachting 2022, €(11.8m average value x 10 x 5,396 units), International Monetary Fund World Economic Outlook Database, April 2024 No Conflicts of Interest Contact Us Transparency and impartiality being central to the Club’s ethos and success, we will welcome advertising and sponsorship in this, our new website. We are not, however, a yachting media outlet and do not rely on advertising revenue. There are plenty of such platforms, and they do a great job. But we’re exclusively on the side of owners. In order to avoid any conflicts of interest, we cannot carry advertising in respect of yachts, or yachting products or services. If you’d like to explore promoting your non-marine business, please get in touch.

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The Owners Club's Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. Home About Rules / / Them's the Rules These Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. You’re bound by the Rules, so please take a moment to read them thoroughly. Please contact us if there’s anything you’d like clarified. 1. DEFINITIONS 1.1. In the Rules the following words have the following meanings: 1.1.2. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club; 1.1.10. Website: the website theownersclub.org, and all pages, parts and elements thereof; 1.1.11. You: You, whether Associate, Member or Governor of The Owners Club, or user of the Website, as the case may be, and Your employer or principal where you act on behalf of one; 1.1.12. Your: of or from You. 2. APPLICATION 2.1. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, You agree to be bound by all of the Rules. 2.2. By using the Website, or viewing, downloading, using, sending, storing or receiving, any Material, You agree to be bound by all of the Rules, as well as Our [privacy policy]. 2.3. You are responsible for ensuring that all persons who access the Website through Your internet connection are aware of all of the Rules and that they comply with them. 3. MEMBERSHIP 3.1. Memberships are for one year, payable monthly. 3.2. A Membership entitles You, for one year, subject to monthly Membership fee instalments having been paid to date, to access those parts of the Website which We may from time to time restrict access to those only with Membership, and to access and download certain Material. 3.3. On each anniversary of You joining Us, We will automatically renew Membership unless You have notified Us that You want to cancel Membership by emailing us at gensec@theownersclub.org. 3.4. We may store and when possible update Your payment method on file. It is Your responsibility to maintain current credit card information on file with Us. 3.5. We reserve the right to change Membership fees from time to time. 3.6. From time to time, we may also offer different Membership terms and benefits. 3.7. Membership fees are non-refundable. 3.8. You authorise Us, to collect, without notice, Membership fees using any valid payment source We have on record for You. 3.9. If You fail to provide a payment to Us in full and on time, or We are unable to obtain payment using Your designated payment, We may deem such a failure as notice of cancellation and cancel Membership immediately. 3.10 We may cancel Membership at any time where We consider that You are in breach of any part of the Rules. 3.11. You are responsible for ensuring all contact details You provide Us with are correct and up to date. 3.12. If You choose, or You are provided with, a user identification code, password or any other piece of information as part of Our security procedures, You must treat such information as confidential, and You must not disclose it to any third party. 3.13. We have the right to disable any user identification code or password, whether chosen by You or allocated by Us, at any time, if in Our reasonable opinion You have failed to comply with any of the provisions of these terms of use. 3.14. If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision will be deemed deleted. Following such modification or deletion, the remainder of the Rules will continue in effect. 12. REVISIONS 12.1. We may revise the Rules from time to time, and will always post the most current version on the Website. By continuing to use or access the Website or Material, You agree to be bound by the most recent revision of the Rules. 13. ENTIRE AGREEMENT 13.1. Unless otherwise specified, the Rules constitutes the entire Rules between You and Us with respect to the matters covered by the Rules, and extinguishes all previous Ruless, arrangements, representations and understandings between You and Us, whether written or oral, relating such matters. 14. ASSIGNMENT 14.1. You must not assign or otherwise transfer any right granted under the Rules. We can freely assign Our rights under the Rules. 15. WAIVER 15.1. A failure or delay by Us to exercise any right or remedy provided under the Rules or by law will not constitute a waiver of that or any other right or remedy, nor will it prevent or restrict any further exercise of that or any other right or remedy. 16. THIRD PARTIES 16.1. A person who is not a party to the Rules will not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Rules. 17. LAW & JURISDICTION 17.1. The Rules and any dispute or claim arising out of or in connection with it or its subject matter or formation will be governed by and construed in accordance with English law. 17.2. The courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Rules or its subject matter or formation. Contact Us These Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. You’re bound by the Rules, so please take a moment to read them thoroughly. Please contact us if there’s anything you’d like clarified. 1. DEFINITIONS 1.1. In the Rules the following words have the following meanings: 1.1.2. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club Management Ltd, trading as The Owners Club; 1.1.10. Website: the website theownersclub.org, and all pages, parts and elements thereof; 1.1.11. You: You, whether Associate, Member or Governor of The Owners Club, or user of the Website, as the case may be, and Your employer or principal where you act on behalf of one; 1.1.12. Your: of or from You. 2. APPLICATION 2.1. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, You agree to be bound by all of the Rules. 2.2. By using the Website, or viewing, downloading, using, sending, storing or receiving, any Material, You agree to be bound by all of the Rules, as well as Our privacy policy . 2.3. You are responsible for ensuring that all persons who access the Website through Your internet connection are aware of all of the Rules and that they comply with them. 3. MEMBERSHIP 3.1. Memberships are for one year, payable monthly. 3.2. A Membership entitles You, for one year, subject to monthly Membership fee instalments having been paid to date, to access those parts of the Website which We may from time to time restrict access to those only with Membership, and to access and download certain Material. 3.3. On each anniversary of You joining Us, We will automatically renew Membership unless You have notified Us that You want to cancel Membership by emailing us at gensec@theownersclub.org. 3.4. We may store and when possible update Your payment method on file. It is Your responsibility to maintain current credit card information on file with Us. 3.5. We reserve the right to change Membership fees from time to time. 3.6. From time to time, we may also offer different Membership terms and benefits. 3.7. Membership fees are non-refundable. 3.8. You authorise Us, to collect, without notice, Membership fees using any valid payment source We have on record for You. 3.9. If You fail to provide a payment to Us in full and on time, or We are unable to obtain payment using Your designated payment, We may deem such a failure as notice of cancellation and cancel Membership immediately. 3.10 We may cancel Membership at any time where We consider that You are in breach of any part of the Rules. 3.11. You are responsible for ensuring all contact details You provide Us with are correct and up to date. 3.12. If You choose, or You are provided with, a user identification code, password or any other piece of information as part of Our security procedures, You must treat such information as confidential, and You must not disclose it to any third party. 3.13. We have the right to disable any user identification code or password, whether chosen by You or allocated by Us, at any time, if in Our reasonable opinion You have failed to comply with any of the provisions of these terms of use. 3.14. If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision will be deemed deleted. Following such modification or deletion, the remainder of the Rules will continue in effect. 12. REVISIONS 12.1. We may revise the Rules from time to time, and will always post the most current version on the Website. By continuing to use or access the Website or Material, You agree to be bound by the most recent revision of the Rules. 13. ENTIRE AGREEMENT 13.1. Unless otherwise specified, the Rules constitutes the entire Rules between You and Us with respect to the matters covered by the Rules, and extinguishes all previous Ruless, arrangements, representations and understandings between You and Us, whether written or oral, relating such matters. 14. ASSIGNMENT 14.1. You must not assign or otherwise transfer any right granted under the Rules. We can freely assign Our rights under the Rules. 15. WAIVER 15.1. A failure or delay by Us to exercise any right or remedy provided under the Rules or by law will not constitute a waiver of that or any other right or remedy, nor will it prevent or restrict any further exercise of that or any other right or remedy. 16. THIRD PARTIES 16.1. A person who is not a party to the Rules will not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Rules. 17. LAW & JURISDICTION 17.1. The Rules and any dispute or claim arising out of or in connection with it or its subject matter or formation will be governed by and construed in accordance with English law. 17.2. The courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Rules or its subject matter or formation. Contact Us

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

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 46 m Length Placeholder Yards Builder 2016 Build year 499 Gross tonnage Cayman Islands Registry Particulars Exemplar

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

The unique Regulations Radar sets out the minimum documentation owners are obliged to maintain for yachts and superyachts registered in the United Kingdom and carrying no more than 12 guests. Other ship registries have similar obligations. This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover. Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn. Home Handbook Regulation / / Regulations Radar This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover . Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn. BOTH ≥400 GT or >15 persons BOTH ≥400 GT BOTH ≥150 GT BOTH ≥24 m LOA to <400 GT BOTH ≥100 GT or >15 persons BOTH >130 kW engine(s) after 1 Jan 2000 COMMERCIAL ≥24 m LOA or ≥150 GT before 21 July 1968 COMMERCIAL ≥24 m LLL or ≥150 GT before 21 July 1968 BOTH ≥300 GT COMMERCIAL ≥300 GT BOTH all sizes COMMERCIAL all sizes PRIVATE all sizes BOTH >1000 GT COMMERCIAL ≥500 GT BOTH ≥24 m LOA PLEASE SELECT THE RELEVANT SIZE(S) TO SEE WHICH DOCUMENTS ARE REQUIRED AND WHY. SELECT ALL RELEVANT CATEGORIES INCLUDING SMALLER SIZES. FOR EXAMPLE, FOR 499GT SEE ≥400GT, ≥300GT, ETC WHILE GT AND USAGE CAN BE FOUND ON YOUR VESSEL'S CERTIFICATE OF REGISTRATION, IT IS THE ACTUAL USE TO WHICH YOUR VESSEL IS PUT WHICH IS KEY. THIS GUIDE IS NOT UPDATED AUTOMATICALLY. CHECK THAT M-NOTICES/NOTES, REGULATIONS AND ACTS ARE STILL IN FORCE. CONTACT US FOR ASSISTANCE. THIS GUIDE IS NOT UPDATED AUTOMATICALLY. CHECK THAT M-NOTICES/NOTES, REGULATIONS AND ACTS ARE STILL IN FORCE. CONTACT US FOR ASSISTANCE. WHILE GT AND USAGE CAN BE FOUND ON YOUR VESSEL'S CERTIFICATE OF REGISTRATION, IT IS THE ACTUAL USE TO WHICH YOUR VESSEL IS PUT WHICH IS KEY SELECT ALL RELEVANT CATEGORIES INCLUDING SMALLER SIZES. FOR EXAMPLE, FOR 499GT SEE ≥400GT, ≥300GT, ETC PLEASE SELECT THE RELEVANT SIZE(S) TO SEE WHICH DOCUMENTS ARE REQUIRED AND WHY PRIVATE all sizes N/A Convention Merchant Shipping Act 1970 Statute Merchant Shipping (Crew Agreements, Lists of Crew and Discharge of Seamen) Regulations 1991 Regulation N/A Code of Practice MGN 474 M-Notice//Note Crew Agreement and List of Crew COMMERCIAL ≥24 m LLL or ≥150 GT before 21 July 1968 Various Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note REG Yacht Code Certificate Various Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M & N Code of Practice N/A M-Notice//Note Certificate of Classification COMMERCIAL ≥24 m LOA or ≥150 GT before 21 July 1968 International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 579 MSN 1752 M-Notice//Note Load Line Conditions of Assignment International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 579 MSN 1752 M-Notice//Note International Load Line Certificate International Convention on Load Lines 1966/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice MGN 579 M-Notice//Note Stability Information COMMERCIAL all sizes Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation N/A Code of Practice MSN 1849 M-Notice//Note On-board complaints procedure International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IV Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Radio Installations) Regulations 1998 Regulation Red Ensign Group Yacht Code, Part A, Chapter 16 Code of Practice MGN 530 M-Notice//Note GMDSS Log Book Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Hours of Work) Regulations 2018 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1877 (M) Amendment 1 M-Notice//Note Table of Shipboard Working Arrangements N/A Convention Merchant Shipping Act 1970, as amended Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Official Log Book) Regulations 1981, as amended Regulation N/A Code of Practice N/A M-Notice//Note Official Log Book Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) Minimum Requirements for Seafarers etc. Regulations 2014 Regulation N/A Code of Practice MGN 477 (M) Amendment 4 M-Notice//Note Seafarer Employment Agreement Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Hours of Work) Regulations 2018 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1877 Amendment 1 M-Notice//Note Record of Hours of Rest of Seafarers COMMERCIAL ≥300 GT International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Load Line) Regulations 1998, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Radio Certificate COMMERCIAL ≥500 GT International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice N/A M-Notice//Note Ship Security Assessment Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1848 Amendment 3 M-Notice//Note Declaration of Maritime Labour Compliance International Convention for Safety of Life at Sea (SOLAS) Chapter XI-! Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Continuous Synopsis Record International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Safety Management Certificate Maritime Labour Convention 2006 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Maritime Labour Convention) (Survey and Certification) Regulations 2013 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G Code of Practice MSN 1848 Amendment 3 M-Notice//Note Maritime Labour Certificate (including DMLC I and DMLC II) International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note International Ship Security Certificate International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation N/A Code of Practice N/A M-Notice//Note Document of Compliance International Convention on Standards of Training and Certification and Watchkeepers 1978/1995 (STCW) Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex G and M Code of Practice MSN 1868 Amendment 1 M-Notice//Note Safe Manning Document International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Survey and Certification) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Equipment Certificate International Convention for Safety of Life at Sea (SOLAS) 1974/1988 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Survey and Certification) Regulations 2015, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes M & N Code of Practice MSN 1751 M-Notice//Note Safety Construction Certificate International Convention for the Safety of Life at Sea 1974 (SOLAS), Chapter IX Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (International Safety Management (ISM) Code) Regulations 2014, as amended Regulation N/A Code of Practice N/A M-Notice//Note Safety Management System International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 & International Ship and Port Facility (ISPS) Code Convention European Communities Act 1972 (originally) Statute Ship and Port Facility (Security) Regulations 2004, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 11 Code of Practice N/A M-Notice//Note Ship Security Plan BOTH all sizes International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation N/A Code of Practice None M-Notice//Note Ballast water management plan (if applicable) N/A Convention Wireless Telegraphy Act 2006 Statute N/A Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice N/A M-Notice//Note Ship Station Radio Licence N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping and Fishing Vessels (Health and Safety at Work) Regulations 1997, as amended Regulation Red Ensign Group Yacht Code, Part A, Chapter 23A Code of Practice MGN 539 M-Notice//Note Code of Safe Working Practices International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation N/A Code of Practice None M-Notice//Note Ballast water record book (if applicable) International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 Convention Merchant Shipping Act 1995, as amended Statute The Merchant Shipping (Control and Management of Ships' Ballast Water and Sediments) Regulations 2022 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note International Ballast Water Management Certificate (if applicable) BOTH >130 kW engine(s) after 1 Jan 2000 Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MSN 1819 M-Notice//Note Engine International Air Pollution Prevention Certificate & NOx technical file BOTH ≥24 m LOA International Convention on Tonnage Measurement of Ships 1969 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Tonnage) Regulations 1997, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 398 M-Notice//Note International Tonnage Certificate BOTH ≥24 m LOA to <400 GT N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Anti-Fouling Systems) Regulations 2009 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note Declaration on Anti-fouling System BOTH ≥100 GT or >15 persons Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex V Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Garbage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note Garbage management plan BOTH ≥150 GT Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note Oil Record Book BOTH ≥300 GT N/A Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Compulsory Insurance of Shipowners for Maritime Claims) Regulations 2012 Regulation N/A Code of Practice N/A M-Notice//Note Certificate of Insurance (third party liabilities) Nairobi International Convention on the removal of Wrecks 2007 Convention Merchant Shipping Act 1995, as amended, & Wreck Removal Convention Act 2011 Statute N/A Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MIN 499 M-Notice//Note Wreck Removal Insurance Certificate BOTH ≥400 GT Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex F Code of Practice MGN 231 M-Notice//Note Shipboard Oil Pollution Emergency Plan Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) (Miscellaneous Amendments) Regulations 2019 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 462 M-Notice//Note International Energy Efficiency Certificate International Convention on the Control of Harmful Anti-Fouling Systems on Ships 2001 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Anti-Fouling Systems) Regulations 2009 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 398 M-Notice//Note International Anti-fouling System Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex I Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Oil Pollution) Regulations 2019, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice None M-Notice//Note International Oil Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008, as amended Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MSN 1819 MGN 381 MGN 386 MSN 1819 Amendment M-Notice//Note International Air Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex VI Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Air Pollution from Ships) (Miscellaneous Amendments) Regulations 2019 Regulation N/A Code of Practice MGN 462 M-Notice//Note Ship Energy Efficiency Management Plan BOTH ≥400 GT or >15 persons Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex IV Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Sewage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 631 M-Notice//Note International Sewage Pollution Prevention Certificate Convention for the Prevention of Pollution from Ships 1973/1978 (MARPOL), Annex V Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Prevention of Pollution by Sewage from Ships) Regulations 2020 Regulation Red Ensign Group Yacht Code, Common Annexes, Annex M Code of Practice MGN 632 Amendment 1 M-Notice//Note Garbage record book and reception facilities receipts BOTH >1000 GT International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 Convention Merchant Shipping Act 1995, as amended Statute Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 Regulation Red Ensign Group Yacht Code, Common Annexes, Annexes L & M Code of Practice MGN 507 (M+F) Amendment 1 M-Notice//Note Civil Liability Certificate for Bunker Oil Pollution Damage This page aims to set out the minimum documentation owners are obliged to maintain for yachts registered in the United Kingdom and carrying no more than 12 guests. Other flags have similar obligations. Non-compliance can lead to port detention and/or fines, and can have implications for insurance cover. Most documents will be needed by the next owner, so if you're looking to sell check that all necessary paperwork is present before your yacht is placed on the market. Don't leave it until a sale has been agreed. M-Notices and Notes are useful guides but not authoritative statements of law, and are regularly withdrawn.

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