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

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

While the lender retains so much security, it also retains liability as registered owner, so it’s perhaps not surprising that pure leasing isn’t more popular. It does form the basis of various VAT-reduction and deferment schemes. Home Handbook Financing / / Leasing Overview 22 October 2020 Last revised minutes 2 Reading time While the lender retains so much security, it also retains liability as registered owner, so it’s perhaps not surprising that pure leasing isn’t more popular. It does form the basis of various VAT-reduction and deferment schemes. Such schemes come and go, and are not covered here. Feel free to contact us regarding tax avoidance. minutes 2 Reading time 22 October 2020 Last revised While the lender retains so much security, it also retains liability as registered owner, so it’s perhaps not surprising that pure leasing isn’t more popular. It does form the basis of various VAT-reduction and deferment schemes. Such schemes come and go, and are not covered here. Feel free to contact us regarding tax avoidance. The arrangement involves a bank or leasing company (lessor) buying a yacht and becoming its legal owner. The lessor then bareboat charters the yacht to the lessee (owner) for an agreed period of time. The lessee pays instalments equivalent to the full value of the yacht plus a return on capital instead of interest on a loan. The lessee is considered the regulatory owner of the yacht. The lessee has exclusive possession and control of the yacht and must keep it in good working order. Insurance against loss or damage is the lessee's responsibility. The lessee is entitled to the warranties provided by the yard. The lessor is indemnified against liabilities related to being the registered owner. The lessee cannot sell the yacht as they do not own it. To terminate the lease, the lessee must pay the remaining instalments or a cancellation fee. The lessee has exclusive possession and control of the yacht and must keep it in good working order. Insurance against loss or damage is the lessee's responsibility. The lessee is entitled to the warranties provided by the yard. The lessor is indemnified against liabilities related to being the registered owner. The lessee cannot sell the yacht as they do not own it. To terminate the lease, the lessee must pay the remaining instalments or a cancellation fee. The arrangement involves a bank or leasing company (lessor) buying a yacht and becoming its legal owner. The lessor then bareboat charters the yacht to the lessee (owner) for an agreed period of time. The lessee pays instalments equivalent to the full value of the yacht plus a return on capital instead of interest on a loan. The lessee is considered the regulatory owner of the yacht. The bank or leasing company (known as the ‘lessor’) buys the yacht and is the legal, registered owner. Then the lessor, in effect, bareboat charters (so, without crew) it to the ‘owner’ (known as the ‘lessee’), over an agreed period of time. The lessee pays instalments equivalent to the full value of the asset over the term of the lease plus a return on capital to the lender, instead of interest on a loan. At the end of the lease, after the final payment has been made, the asset may be transferred to the lessee. FEATURES Typically, the lessee: Is the ‘owner’ of the yacht for regulatory purposes; Has exclusive possession and control of the yacht; Will be obliged to keep the yacht in good working order; Must insure the yacht against loss or damage; Will be entitled to the yard’s warranties; Must indemnify the lessor against liabilities stemming from the lessor being the registered owner; Cannot sell the yacht as it does not own it; and Must pay the remaining instalments, or a cancellation fee, to terminate the lease agreement. OTHER FORMS The Statement of Standard Accounting Practice SSAP 21 (Accounting for leases and hire purchase contracts) defines a finance lease as a lease which transfers ‘substantially all of the risks and rewards of ownership of the asset to the lessee’. The distinction is drawn with operating leases, common for aircraft, plant and equipment, where the risk in relation to the asset falls on the lessor rather than the lessee. An operating lease will be treated as being off balance sheet in the lessee’s accounts, and at the expiry of the lease term, the lessee is obliged to return the asset to the lessor and the asset’s residual value is of no concern to the lessee. Only relevant to smaller yachts and tenders, SSAP 21 also distinguishes a hire purchase contract, which allows the hirer to acquire legal title by exercising an option to purchase the asset – normally having paid an agreed number of instalments. SSAP 21 prescribes the accounting treatments, but note that accounting standards are being developed which will supersede SSAP 21. 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 Loans Overview Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Loans Overview

All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. Naturally, as with any business relationship, the key to longevity lies in establishing at the very beginning exactly who is responsible for what. Home Handbook Managing / / Engaging a Manager 18 May 2009 Last revised minutes 4 Reading time All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. minutes 4 Reading time 18 May 2009 Last revised All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. Good quality yacht management is vital, as owners can face fines, vessel detention, and criminal liability for breaching safety regulations. Sanctions can bypass corporate and trustee owning structures by being enforceable against the yacht itself. Managers should ideally agree to indemnify owners against third-party claims arising from their actions or inaction. Owners should ensure that managers have sufficient indemnity insurance to cover potential large claims. The Convention on Limitation of Liability for Maritime Claims may limit managers' financial liability in some cases. Managers may seek protection by being named as joint-assured or co-assured on the owner's insurance policy. Some managers may handle insurance, claims, and disputes for owners, requiring a detailed understanding of insurance law. Owners should ensure that managers act as "principals" rather than "agents" in contractual matters. Managers may outsource certain tasks, and the management contract should specify the tasks they have authority to sub-contract. The International Safety Management Code applies to commercially-operated yachts over 500 GT, and managers should assume responsibility under it. Managers may seek protection by being named as joint-assured or co-assured on the owner's insurance policy. Some managers may handle insurance, claims, and disputes for owners, requiring a detailed understanding of insurance law. Owners should ensure that managers act as "principals" rather than "agents" in contractual matters. Managers may outsource certain tasks, and the management contract should specify the tasks they have authority to sub-contract. The International Safety Management Code applies to commercially-operated yachts over 500 GT, and managers should assume responsibility under it. Good quality yacht management is vital, as owners can face fines, vessel detention, and criminal liability for breaching safety regulations. Sanctions can bypass corporate and trustee owning structures by being enforceable against the yacht itself. Managers should ideally agree to indemnify owners against third-party claims arising from their actions or inaction. Owners should ensure that managers have sufficient indemnity insurance to cover potential large claims. The Convention on Limitation of Liability for Maritime Claims may limit managers' financial liability in some cases. Naturally, as with any business relationship, the key to longevity lies in establishing at the very beginning exactly who is responsible for what. Yacht management agreements vary hugely from the very simple to the overly complex. Even those offered by the most prestigious brokerage houses can omit essential elements. The following is an overview of what a meaningful agreement should contain. INDEMNITY As well as having to pay fines for breaching regulations, or even having his yacht detained, an owner can be subject to criminal liability where safety regulations have been breached. By being enforceable against the yacht itself, sanctions can also sidestep corporate and trustee owning structures. As a starting point, therefore, the manager should ideally agree to indemnify the owner faced with third party claims which arose because of the manager’s actions or inaction. But there is no point handing some of the liability over to a manager, if that manager is an uninsured company without the assets to meet a large claim. In most cases, even if the individuals behind the company have been negligent, and own sufficient assets to make them worth suing, it is still only the management company which would be liable. Owners should therefore make sure that their manager carries sufficient indemnity insurance. LIMITATION Although managers may be able to limit their ultimate financial liability under the internationally-recognised Convention on Limitation of Liability for Maritime Claims 1976, there will still be many situations in which this will be unlimited. Understandably, therefore, a manager may wish to expressly cap liability to an owner in the contract itself. Although it is clearly in the interests of the owner to resist this, such a cap may be necessary to enable a manager to obtain indemnity insurance. INSURANCE Managers may seek protection from third party claims by being named as ‘joint-assured’ or ‘co-assured’ on an owner’s insurance policy, typically without significantly increasing the total premium. Whilst the manager’s premium savings can be passed onto the owner, as ‘joint assured’ the manager risks having to pay the owner’s unpaid premiums. As ‘co-assured’ the manager does not usually face this risk. This arrangement does not provide protection against claims by the owner. CLAIMS HANDLING Some managers may also like to add value by arranging insurance and handling the owner’s subsequent claims and disputes. This is not a matter of form-filling. It requires a detailed understanding of insurance law and practice. The owner should decide for himself whether the manager has the appropriately qualified staff. PRINCIPAL As far as possible, the owner should ensure that the manager agrees to deliver particular services as a fait accompli, rather than just provide advice and administrative support. This entails the manager contracting in its own name where possible, rather than the owner’s. To use the legal jargon, the manager should be obliged to act as ‘principal’ rather than ‘agent’ of the owner. Contractual disputes with third parties will not then have to involve the owner, subject to any liens which may have arisen on the yacht as a result of services rendered. OUTSOURCING After an owner has taken great care to appoint a reputable manager, there will be nothing to stop the manager then outsourcing responsibilities to anyone else. Of course, this may not be quite what the owner had in mind. The management contract should therefore state exactly what broad tasks the manager has the authority to sub-contract. Technical matters, such as the maintenance of specialist equipment, may be beyond even the crew’s or manager’s capabilities. Specifications and regulations do change over time, and the necessity for occasional expert third party advice should not be a cause for suspicion or alarm. ISM CODE The International Safety Management Code (more commonly, the ‘ISM Code’) applies to commercially-operated yachts over 500 GT. Although the ISM Code itself has no significant bearing on the balance of liabilities between owner and manager, it is vital to ensure that the manager assumes responsibility under it. This can be achieved by ensuring that the ‘Company’, as defined in the ISM Code, is said to be the manager in the relevant documentation. The ISM Code requires the Company to have such adequate resources immediately available, meaning that outside advice must be expressly obtainable without further permission where circumstances dictate. Further, a bespoke Safety Management System must have been developed, implemented and maintained. This is a lengthy and complex task. There is also a specific requirement under the ISM Code for a shore-based Designated Person to be appointed, whose role in an emergency is pivotal. It is not enough to leave safety management to the captain alone. Non-adherence may lead to the detention of the yacht by port authorities, and insurance being invalidated. CREW Crew members may prefer to be the employees or contractors of the manager rather than the owner, especially as they may have known the individuals at the management company for many years. Should the worst come to the worst, it is also best that the manager is responsible for terminating a contract of employment, or reassigning a crewmember, to prevent relations between the owner and the remaining crew being soured. Allowing a manager to employ the crew also allows for some comeback against an insured management company in the event of crew incompetence, rather than the individual crewmember who may not have much in the way of property or savings. Where the owner chooses to employ the crew, it must still be clearly stated in the contract of employment that the crewmember will obey all the manager’s reasonable orders, especially in connection with the operation of any compulsory Safety Management System in operation. The manager must agree to ensure that the crew meets the standards of training and medical fitness, as required by the yacht’s flag state, at all times. Manning levels must also be satisfactory. Ensuring that the crewmembers have a sufficient command of a common language is not just matter of practicality, but an ISM Code requirement. It should also be incumbent upon managers to ensure that drug and alcohol laws and polices are strictly adhered to. ACCOUNTS Managers must agree to allow their accounts relating to the particular yacht to be available for inspection by the owner. In some jurisdictions, such accounts may be seen as the property of the manager alone, encouraging litigation and forced disclosure in the event of a dispute. Indeed, the manager must agree to hand over all vital documents relating to the yacht when requested, so that these are not ‘ransomed’ in the event of a dispute. More generally, the obvious should never be overlooked. For example, it must be stated that the management agreement (and therefore fee payments) will end if the yacht is lost. Further, BALANCE Striking the right balance is never easy. Compromises are inevitable. In commercial ship management agreements, by comparison, managers typically agree to use their ‘best endeavours’ to provide management services to the owners in accordance with ‘sound management practice’ and to protect and promote the interests of the owners. This is a fair and time-honoured balance. ‘Best endeavours’ means nothing less than the best, although ‘sound management practice’ is said to envisage competing priorities for a manager handling more than one vessel, which may not be acceptable to a demanding yacht owner. CONCLUSION Most agreements are entered into in a spirit of genuine goodwill, at a time when a lawsuit couldn’t be further from the minds of the parties. This is especially so with yachts, which promise a temporary escape from the litigious business world. Yet it still requires attention to detail at the outset to ensure that this promise is fulfilled. 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 Limiting Liability Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Limiting Liability

When yacht insurance underwriters ask questions, you, the owner, must respond to as accurately as possible. But there is also a positive duty on insured to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. Home Handbook Insuring / / Providing Information 15 April 2023 Last revised minutes 4 Reading time When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. minutes 4 Reading time 15 April 2023 Last revised When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. Insurance contracts are based on the principle of the utmost good faith, requiring parties to provide honest and complete information. Underwriters may not have detailed knowledge of each specific risk, so insured individuals have a duty to disclose material information. A fair presentation of the risk includes disclosing all material circumstances or providing sufficient information to prompt further inquiries by a prudent insurer. Disclosure should be clear and accessible to the insurer, and statements must be made in good faith. Material circumstances are those that would influence a prudent insurer's judgment in determining whether to accept the risk and on what terms. The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers. Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed. Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies. Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract. Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums. The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers. Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed. Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies. Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract. Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums. Insurance contracts are based on the principle of the utmost good faith, requiring parties to provide honest and complete information. Underwriters may not have detailed knowledge of each specific risk, so insured individuals have a duty to disclose material information. A fair presentation of the risk includes disclosing all material circumstances or providing sufficient information to prompt further inquiries by a prudent insurer. Disclosure should be clear and accessible to the insurer, and statements must be made in good faith. Material circumstances are those that would influence a prudent insurer's judgment in determining whether to accept the risk and on what terms. No two insurance risks will ever be identical. Underwriters will know about yachts in general, but they cannot be expected to know the ins and outs of your particular vessel, which will be, to a greater or lesser extent, unique, and crewed, managed and operated in a distinctive way. So while most contracts work on the basis of buyer beware – with parties doing their own homework – insurance works on the opposite basis: there’s a positive duty to provide honest information. They are said to be contracts of ‘utmost good faith’. This is manifested in the insurer, in the case of yachts owned by companies (which cannot, by definition, be considered as consumers) being under a duty to make a ‘fair presentation’ of the risk. This duty obliges the insured to disclose material circumstances that it knows (or ought to know) or put a prudent underwriter on notice that it needs to make further enquiries. FAIR PRESENTATION A fair presentation is one where the insured discloses every ‘material circumstance’ which the insured knows or ought to know, or, failing that, gives sufficient information to put a (hypothetical) ‘prudent insurer’ on notice that it needs to make further enquiries for the purpose of revealing those material circumstances. Disclosure must be made in a manner which would be reasonably clear and accessible to that hypothetical prudent insurer. Facts must ‘substantially correct’ and statements of expectation or belief must be made in good faith. A circumstance will be material if it ‘would influence the judgement of a prudent insurer in determining whether to take the risk and, if so, on what terms’. This includes special or unusual facts relating to the risk, particular concerns which led the insured to look for cover, and anything which those specialising in yachting-related risks would generally understand as being something that should be included in a fair presentation of risk. Note that we are concerned with the judgement of a prudent insurer: the opinions of the actual underwriter concerned are irrelevant. The insured’s knowledge, in the case of an owning company, is taken to mean the company’s ‘senior management’, which will include captains and departmental heads, plus those making decisions about insurance (including insurance brokers or other intermediaries acting on the owner’s behalf – whether regulated or not – such as a yacht broker). A ‘reasonable search’ for relevant information must be made – including with third parties. This might include, for example, making inquires with classification societies. PRACTICAL MATTERS The claims history of both the legal and beneficial owner will almost certainly be material – even if the proposal form simply asks in respect of the ‘insured’s claims record. If you, as beneficial owner, have criminal convictions in respect of dishonesty then this should be disclosed. While it may be obvious whether or not a yacht requires crew, the nature and extent of crewing arrangements will need to be provided in detail. The captain’s CV/résumé may be requested. You should ask a third party services provider to verify the crewmember’s qualifications and stated experience. If a survey is needed, check whether that surveyor must have been approved by the underwriter and/or hold certain qualifications. VALUATIONS Yacht valuations can, and have, been a source of contention over the years. Policies can be unvalued but given the obvious room for disagreement, nearly all on the basis of a valuation agreed at the outset. There should be a specific reference to the value being agreed – not merely to a ‘sum insured’ or similar. Unless fraud can be proved, the fixed value is usually conclusive. Problems arise where owners pay over the odds at the outset, or where renewals haven’t taken account of depreciation, so that the resulting over-valuation risks being deemed to be a material misrepresentation. This will be the conclusion where the owner has no genuine belief that the value given was a true valuation. It would be wise to obtain an independent valuation, but – being subjective – this shouldn’t be treated as conclusive. CONSEQUENCES If the insured breaches the duty of fair presentation, the underwriter is entitled to a remedy only if it can demonstrate that the breach directly influenced its decision to enter into the insurance contract, or at all. To prove this influence, the underwriter must establish that, without the breach, it would not have entered into the contract or, at least, would have done so on different terms, such as a higher premium. If the breach of the duty of fair presentation was made deliberately or recklessly, the underwriter can walk away from liability entirely – not even pausing to return premiums paid. If the breach was neither deliberate nor reckless, and the underwriter would not have provided cover on any terms, then payment of claims can be refused but premiums paid must be returned. If the underwriter would have just charged a higher premium, then the amount payable on a claim may be reduced proportionately. CONSUMERS In the unlikely ( and unwise ) event that own your yacht personally, and it’s not chartered out or otherwise used for business purposes, then your position, as a consumer, is different to that set out above. It’s then up to underwriters to ask the questions and determine the risk. The insured simply has to exercise reasonable care not to make a misrepresentation when answering questions. There’s no obligation to volunteer information. TIPS & TRICKS Be sure that the insurance broker earns its commission and tells you everything you need to disclose. It is quite possible that your broker advises you poorly, and, as a result, you fail in your duty of fair presentation. In which case, the broker will be liable. Consider where the broker is based and how it is regulated. Obtaining the requisite information takes time, so plan ahead – including when it’s time to renew. Do not assume that the underwriter already has sufficient information: disclose all material information, even if it’s obvious. Be sure to respond fully to all questions raised. Avoid data dumping, and make sure that information is indexed, categorised or otherwise easily navigable. Keep an audit trail of the searches carried out and the enquiries made, to prove that you have conducted a reasonable search. 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 Staying Covered Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Staying Covered

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

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

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

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!

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

Converting working and naval ships in to yachts can save time and money, and the results can be spectacular. As each project is unique and challenging, it is crucial that terms are agreed with the yard undertaking the work which are clear, fair and practical. And each such agreement will be a one-off. Home Handbook Upcycling / / Conversion Agreements 10 August 2019 Last revised minutes 5 Reading time Converting working and naval ships into yachts can save time and money, and the results can be spectacular. Each project is unique and challenging. It is crucial that the terms agreed with the yard undertaking the work are clear, fair and practical. And each such agreement will be as unique as the project. minutes 5 Reading time 10 August 2019 Last revised Converting working and naval ships into yachts can save time and money, and the results can be spectacular. Each project is unique and challenging. It is crucial that the terms agreed with the yard undertaking the work are clear, fair and practical. And each such agreement will be as unique as the project. By choice, most shipping agreements, including yachting, are governed by English law regardless of the parties' location. Conversion agreements are subject to the Supply of Goods and Services Act 1982, which implies terms such as satisfactory quality and reasonable fitness for purpose. Yards must use reasonable care and skill in providing services, but it may not meet the high standards expected in yachts. Parties should seek legal advice to create fair and workable terms for conversion agreements. The price for conversion works is usually a fixed fee payable in installments, with adjustments for changes in specifications. The scope of works should be clearly defined, including repair and conversion components, with detailed technical specifications and objective performance standards. The agreement should address interface risks and allocate responsibility for inaccuracies in plans and specifications. A specific timeframe, known as the Redelivery Date, should be agreed upon, with provisions for liquidated damages and cancellation if the project overruns. Other key provisions include force majeure clauses, security arrangements, material ownership, insurance coverage, and warranty periods for remedying faults. The scope of works should be clearly defined, including repair and conversion components, with detailed technical specifications and objective performance standards. The agreement should address interface risks and allocate responsibility for inaccuracies in plans and specifications. A specific timeframe, known as the Redelivery Date, should be agreed upon, with provisions for liquidated damages and cancellation if the project overruns. Other key provisions include force majeure clauses, security arrangements, material ownership, insurance coverage, and warranty periods for remedying faults. By choice, most shipping agreements, including yachting, are governed by English law regardless of the parties' location. Conversion agreements are subject to the Supply of Goods and Services Act 1982, which implies terms such as satisfactory quality and reasonable fitness for purpose. Yards must use reasonable care and skill in providing services, but it may not meet the high standards expected in yachts. Parties should seek legal advice to create fair and workable terms for conversion agreements. The price for conversion works is usually a fixed fee payable in installments, with adjustments for changes in specifications. Most agreements in shipping (including yachting) are governed, by contract if not otherwise, by English law – no matter where in the world the parties are. Unlike shipbuilding agreements, which under English law are contracts for the sale and purchase of goods, conversion agreements are, broadly, contracts for the sale and purchase of labour combined with a supply of materials. As such, they are governed by the Supply of Goods and Services Act 1982 (as amended) and thereby subject to the same implied terms that apply to a contract for the sale of goods, namely that the materials must be of “ satisfactory quality ” and “ reasonably fit ” for any specific purpose expressly or implicitly disclosed to the yard. Further, in providing services, the yard must merely use “ reasonable care and skill ” – which the courts have determined means “ the ordinary skill of an ordinary competent [person] performing that particular art .” The result may be far from the highest standards of workmanship expected in the context of yachts. Far better, then, to agree to certain objective specifications being met. KEY PROVISIONS As with yacht building, there is no standard conversion agreement for parties to use and adapt. Elements of standard shipbuilding, and standard yacht refit, agreements could be used but the parties should take advice at the outset so that fair and workable terms are agreed – including some of the following key terms. PRICE Works are typically carried on for fixed fee, payable in instalments following the completion of particular stages of the conversion. Changes in specifications are reflected in adjustments agreed to the fee. Owners should insist on unit prices for labour and key materials being fixed at the outset, in order that the yard cannot raise these unduly in respect of additional works. SCOPE Setting out the scope of the works to be completed is key. There is no alternative to drafting a detailed technical specification – including plans, objective performance and/or finish standards to be achieved. It's helpful to divide the scope into two distinct components: A repair scope, setting out the elements needing repair following the thorough pre-purchase survey; and A conversion scope, setting out what needs to be added – or removed – in order for the vessel to become a yacht. The repair scope will need some inherent flexibility as the repairs themselves may reveal further issues which weren’t apparent during the survey, while the conversion scope can, and should, be very rigid. In addition, the conversion agreement will have to describe standards to be met by the yard in respect of the works. Vague standards often used in the context of trading vessels – such as “ first class ” shipbuilding standards – should be avoided, and objective standards used. Comparisons can be made to other existing vessels. But ideally, reference should be made to Classification Society Rules or other objective standards and measurements. There are few, if any, aspects which can’t be measured objectively – which is crucial especially where the yard isn’t used to the very high standards expected by yacht owners. Converting a vessel into a yacht may pose “interface risks”. These are the risks of a failure of materials and/or design where new materials and equipment are installed into an existing structure. So, if possible, the yard should bear such risks. Yards can require owners to warrant that plans and specifications of the vessel as it comes into the yard are accurate – meaning that additional expenses arising from any inaccuracies will be for the owner’s account. TIMEFRAME Parties will need to agree that the works should be finished by a specific date, typically referred to as the Redelivery Date – with fixed amounts of money (known by lawyers as “liquidated damages”) payable for each day that the project overruns. This avoids otherwise lengthy and expensive arguments about quantifying loss of use. And if the overrun goes beyond an agreed date, the owner must be allowed to cancel the agreement and take the vessel for completion elsewhere. Yards will need to prepare for the vessel’s arrival well ahead of time. In particular, other projects may need to be relocated within the yard to make space. Manpower will need to be arranged. Supplies will have been ordered and/or delivered, and third-party contractors may have been booked or will be on standby. The yard will therefore want to be notified of the actual arrival date – and be updated on her progress towards the yard – irrespective of the specific agreed starting date. The agreement will typically specify what will happen if the vessel is delivered late, with the yard usually being allowed to extend the contractual redelivery date by the same amount of time. Alternatively, the redelivery date may be replaced by an obligation on the yard’s part to finish the work and redeliver the vessel within a reasonable amount of time. FORCE MAJEURE Force majeure clauses automatically retard the redelivery date by an amount of time equivalent to that of the delaying event – where such event is due to certain circumstances beyond the yard’s control. As with the timeframe for the works, it is wise to have a long-stop date, beyond which the owner can cancel the agreement and take the vessel away elsewhere for completion. SECURITY It must be expressly agreed that the owner at all times retains title in the vessel, and all her machinery, equipment and items awaiting installation. Indeed, the owner may need to keep a skeleton crew on board, at least a build captain, for the duration of the works. The conversion agreement should also state that the owner acquires title to the works and equipment that are continuously added as the project progresses. As owner, should you wish to cancel the project prior to completion, your remedies are normally limited to removing your project for completion at a second yard, and suing the yard for any additional completion costs over and above the outstanding balance of the price agreed with the first yard. This will take time – especially where enforcement proceedings are required in the yard’s own jurisdiction – and some legal costs may not be recoverable. Far better, then, to obtain a performance guarantee or completion bond, giving security against major cost overruns when finishing the vessel elsewhere. MATERIALS With a steady throughflow of materials at the yard, there is scope for disagreement over who owns what at any given time. It is vital to establish this, as such materials must be insured, and protected from the yard’s creditors in the event of insolvency. The yard must ensure that such provisions in the conversion agreement do not contradict the terms under which such materials have been bought by the yard form third party suppliers. Where ownership has passed to the owner, the yard may want to have a contractual lien over such materials in case of a future non-payment by the owner. INSURANCE It’s vital that the owner and yard agree on how the risks of loss or damage to the vessel and materials will be covered. This includes owner-supplied items being stored ashore at the yard. Owners usually maintain their Hull & Machinery (first party) and Third Party Liability policies. And it’s vital not only to discuss the works in detail with insurance brokers , but to be as certain as possible that the underwriters themselves have been notified and agree to the scope of the works, which yard is to be used, etc. Particular attention must be paid to policy terms, especially any requiring the vessel to remain fully crewed at all times. It would be unwise to assume that underwriters will overlook such a requirement just because the vessel is subject to extensive works. WARRANTY A warranty period of twelve months is typical – during which the yard is contractually obliged to remedy faults arising – as is normally found in build agreements. However, the warranty will need to be carefully drafted to avoid disputes over whether is it the new or original parts or equipment which have failed, and if it’s the original elements whether this is due to the presence of the new elements. Yards will often only agree to limit its liability to the repair of its own defective materials or workmanship. 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 Conversion Projects Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Conversion Projects

The types of yacht insurance you need depends on the size of your vessel – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to be sold cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. Home Handbook Insuring / / Types of Insurance 26 March 2023 Last revised minutes 8 Reading time The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. minutes 8 Reading time 26 March 2023 Last revised The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through. Large yacht ownership involves various risks, and insurance coverage is available to mitigate those risks. Compulsory insurances are required by port authorities, including third-party liability cover for yachts over 300 gross tonnes. Protection & Indemnity (P&I) Clubs provide liability coverage and support for yacht owners, often combined with Freight, Demurrage & Defence (FD&D) cover. Employers' liability insurance is required under UK law for the legal owner's liability for employee injuries. Maritime Labour Convention (MLC) requirements include liability coverage for repatriation, outstanding salaries, and occupational injury-related payments for crew. Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents. Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members. Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks. Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories. Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance. Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents. Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members. Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks. Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories. Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance. Large yacht ownership involves various risks, and insurance coverage is available to mitigate those risks. Compulsory insurances are required by port authorities, including third-party liability cover for yachts over 300 gross tonnes. Protection & Indemnity (P&I) Clubs provide liability coverage and support for yacht owners, often combined with Freight, Demurrage & Defence (FD&D) cover. Employers' liability insurance is required under UK law for the legal owner's liability for employee injuries. Maritime Labour Convention (MLC) requirements include liability coverage for repatriation, outstanding salaries, and occupational injury-related payments for crew. Here we’re looking at the various risks which large yacht ownership entails, and the cover available. Individual policies go by various names, and multiple risks are sometimes covered by one product, especially for smaller vessels. Compulsory insurances are considered first, followed by discretionary coverage. Many port authorities require not only cover, but also immediate proof in the form of certificates, so make sure these are issued simultaneously with insurance documentation. THIRD PARTY LIABILITY Risk Risk of the legal owner’s liability to third parties, while your yacht is in service. Required For yachts of 300 gross tonnes or more, third party liability cover is required by, and in accordance with, the Merchant Shipping (Compulsory Insurance of Shipowners for Maritime Claims) Regulations 2012 (UK) and Directive 2009/20/EC on the insurance of shipowners for maritime claims (EU). Most port states and private marinas require third party cover. Remarks Offered as Third Party Liability (TPL) insurance, or as broader Protection & Indemnity (P&I) cover - particularly for larger yachts. Historically, because third party claims can be so large (think oil spills), commercial ship owners joined together to form Protection & Indemnity Clubs, known as P&I Clubs. The larger ones are members of the International Group which has liability pooling arrangements to cope with the largest claims. Operating on a mutual not-for-profit basis, meaning that members can be asked to pay additional amounts to make the books balance, yacht owners can be an awkward fit. Some Clubs now offer fixed-premium cover. P&I Clubs in particular have claims handlers and foreign correspondents able to provide immediate advice following an incident, and can provide useful loss prevention guidance. In the unlikely event of a yacht being detained at a port following, for example, an accidental diesel discharge, the club will also have the known and respected financial muscle to provide security and allow the yacht to be released while the claim is processed at a later date. This support can be extremely useful in helping to keep a charter schedule on track, especially where problems are encountered in exotic destinations where local insider knowledge and contacts are vital. Although owners and managers should always ensure that they make the most of the Clubs’ support, this network is often overlooked. It can be packaged with Freight, Demurrage & Defence (FD&D) cover, which combines hands-on legal support provided by P&I Club in-house lawyers, and cover for external legal advice. EMPLOYERS’ LIABILITY Risk Risk of the legal owner’s liability for bodily injury or disease sustained by any of its employees and arising out of and in the course of their employment. Required Required within the waters of, and yards within, Great Britain under the Employers' Liability (Compulsory Insurance) Act 1969 as supplemented by the Employers' Liability (Compulsory Insurance) Regulations 1998, in respect of any employee ordinarily resident in Great Britain. Remarks This is a specific requirement of United Kingdom law, but similar requirements apply in many other jurisdictions, such as under the Jones Act in the United States. Cover will usually already be provided by a P&I Club (if applicable) so make sure you’re not paying for separate employers’ liability unnecessarily. Your broker should be able to advise you of cover limits applicable. It’s easy for dayworkers to become employees for the purposes of the law – even though they aren’t formally employed as crew or otherwise. MLC REQUIREMENTS Risk Risk of the legal owner’s liability for repatriation of crew and associated essentials, liability for outstanding salaries, etc, and liability for contractual payments for death or long-term disability due to an occupational injury, illness or hazard. Required Required in respect of all chartered yachts, where the Maritime Labour Convention 2006, as amended, (MLC) is in force, and aboard yachts registered in countries applying the MLC, pursuant to Regulation 2.5 Standard A2.5.2 Paragraph 9 and Regulation 4.2 Standard A4.2.1 paragraph 1(b) of MLC. Remarks Cover will usually already be provided by a P&I Club (if applicable) so make sure you’re not paying for separate MLC cover unnecessarily. Your broker should be able to advise you on whether such cover is needed. CREW WELFARE Risk Risk of a crewmember being unavailable for work for longer than necessary. Required Some elements may be required by law. Remarks Typically covers treatment costs, and financial repercussions, for crew in the event of illness or accident – whether on duty or not, and whether on board or ashore. Cover varies considerably, and there may be some elements of the cover which overlaps with, or includes, employers’ liability insurance and/or cover required by MLC. Beyond legal requirements, unless you’re prepared to pay this out of your own pocket, it makes sense to insure against crew accidents and medical treatments costs. It’s a benefit which is appreciated and may help to ensure that crew with minor injuries can return to work as soon as possible. OIL POLLUTION Risk Risk of the legal owner being held liable for the criminal acts of crewmembers in causing oil pollution, and the effects and costs of cleaning up. Required Insurance is usually required in respect of all yachts over 1,000 GT by the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, but liability under this convention extends to vessels of all sizes. May also be required by other local laws, such as the United States Oil Pollution Act 1990. Remarks Fines and clean-up costs can be enormous, and the spectre of criminal liability – potentially meaning that beneficial owners cannot shelter behind an owning company – means that you must be clear that the requisite cover is in place. Cover is normally provided by P&I Clubs, and Blue Cards, proving cover, can normally be obtained on request. Fines can be issued for not carrying proof on board. WRECK REMOVAL Risk Risk of the legal owner being fined for not being insured against the costs of wreck removal. Required Insurance can be required in respect of all yachts of 300 GT and over – by a small but growing number of countries – under the Nairobi International Convention on the Removal of Wrecks 2007. It can also be mandated by local laws. Remarks Cover is normally provided by P&I Clubs, and Blue Cards, proving cover, can normally be obtained on request. Fines can be issued for not carrying proof on board. HULL & MACHINERY Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories. Required Not normally required by law. Remarks The term Hull & Machinery is a little misleading since the whole yacht will be covered, not just the hull and ‘machinery’ – a shipping term essentially meaning the engine and sterngear. The precise scope of cover will vary. Check, for example, whether fine art and valuables are covered, as well as your other personal effects and those of guests and crewmembers. Be aware of conditions in respect of named storms, and geographical cruising limits. Also check whether tenders are covered. Aircraft and submersibles carried on board are normally excluded. WAR & STRIKES Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories, caused by war, terrorism, insurrection and strikes, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks While cruising in a war zone isn’t going to provide the most relaxing experience, this fills gaps in the Hull & Machinery policy which may exclude passages through waters known for piracy, and damage caused where volatile political demonstrations spill over into harbourside areas. FINE ART & VALUABLES Risk Risk of loss of, or damage caused to, works of art and other valuable items, installed or carried on board your yacht, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks Because the sky could otherwise be the limit to losses – and because yacht insurance has its roots in commercial shipping, works of art and other valuable items are normally excluded from Hull & Machinery policies. This insurance fills that gap. Be alert of the need to agree item descriptions and valuations at inception. SUBSEA EQUIPMENT Risk Risk of loss of, or damage caused to, submersibles being carried on board your yacht, and not covered by your Hull & Machinery policy. Required Not normally required by law. Remarks Submersibles being too specialist a risk for many underwriters, they are normally excluded. KIDNAP & RANSOM Risk Risk of you having to pay for crisis response, negotiation services and ransoms in the event of a kidnapping. Required Not normally required by law. Remarks While damage caused to your yacht, by pirates, should be covered by Hull & Machinery or War & Strikes Risks, costs associated with any resulting kidnapping are not. This insurance looks to plug that gap. PROJECT RISK Risk Risk of loss of, or damage caused to, your yacht, its engines, equipment, fittings and accessories, while being built. Required Not normally required by law. Remarks Hull & Machinery insurance is for yachts that have been completed – not in-build projects. The builder will insure the project (and this should have been addressed in the build agreement ) but the builder’s cover may be limited. This cover looks to plug that gap, as well as covering parts and equipment in storage at the yard and awaiting installation. PROJECT LIABILITY Risk Risk of the legal owner’s liability to third parties, while your yacht is being built, refitted or repaired. Required May be required by law. Remarks While the builder’s insurances should provide cover in respect of its own contractors and employees, it will not normally cover your project manager(s), crewmembers and contractors which you engage in respect of the project, and its tenders. You may have specific employers’ liability insurance obligations, or the local equivalent. 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 Understanding the Contract Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Understanding the Contract

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

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

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

It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Home Handbook White Papers / / Speaking Volumes Browse the website of any large brokerage and you will find numerous vessels said to have a “GT” of 499. This refers to Gross Tonnage. Owners of these are relieved from having to comply with a raft of regulations which apply to chartered vessels of 500 GT and above. Not doing so can lead to the yacht being detained and will lead to insurance policies being invalid. To be clear, this paper isn’t suggesting that the relevant safety regulations shouldn’t apply to certain larger yachts - it’s just that Gross Tonnage creates peculiar regulatory thresholds which can lead to compromised designs. Whether or not owners are looking to shave money off compliance costs, designers certainly consider there to be a market for such “paragraph” yachts. Keep in mind, also, that many such safety regulations don’t apply to private (i.e. non-chartered) yachts - even though they require the same number of permanent, full-time crewmembers. WHAT IS GROSS TONNAGE? The word ‘tonnage’ here does not mean weight. It is derived from the old English term ‘tun’ meaning a large wooden barrel – used for measuring, storing and transporting wine, oil or honey. They usually held 252 gallons, but other sizes were common. As it happens, a tun of wine weights about one long ton, which is 2240 pounds or 1016 kg, but the key point is that Gross Tonnage reflects volume – not weight, mass or displacement. Gross Tonnage is an abstract, unitless calculation, being the vessel’s total enclosed volume but modified by a logarithmic factor based on that volume. It was a compromise which met the needs of the shipping community of the 1960s. Yet these arcane rules still govern the design and specification of certain yachts over half a century later. Crucially, the figure is calculated as much as it is measured. It is defined by the Regulation 3 of Annex I of the International Convention on Tonnage Measurement of Ships, 1969 (normally abbreviated to “ITC 69”) by the formula: GT=K1V Where: V = the total volume of all enclosed spaces of the ship in cubic metres, and K1 = 0.2 + 0.02 log10V (or as set out in Appendix 2 of ITC 69) Calculating this requires a good grasp of both naval architecture and mathematics. UNDERLYING RATIONALE The reason why volume is used rather than weight is that, historically, ships were measured in order to calculate taxes. Aside from warships, all vessels were cargo ships of some description. And the easiest and fairest way to fund port operations and levy foreign trade was to tax ship owners according to cargo carrying capacity and, therefore, profitability. Overall vessel size was not the key factor. The same principles were applied to later passenger ships. Different countries used a variety of methods, which is why the ITC 69 was needed. This also did away with Gross Register(ed) Tonnage (GRT) - a measure of total internal capacity which is confused with GT even to this day – and at least ten other key measurements in use internationally. PROBLEMS CAUSED Inevitably, there is pressure on ship designers to minimise enclosed volume and reduce Gross Tonnage-based taxes and dues. Such amounts are minimal on relatively small vessels, such as yachts, but squeezing beneath a particular tonnage threshold seems to be a common aim. This can lead to freeboards (the distance between the waterline and the deck) being reduced to the minimum legal requirement. In turn, this reduces the available reserve buoyancy – those internal areas, above the waterline, which can be made watertight in the event of an emergency and help keep the vessel afloat for longer. Further, crew areas are reduced to the bare minimum in terms of floor space and headroom, and engine rooms are made as small as possible with machinery crammed in. Most pertinently for yachts, sterns tend to be cut off and slab-sided, sheer (the curving of the main deck upwards towards bow and stern) is reduced or eliminated, and swathes of the upper decks are given over to sundecks. Arguably, yachts are less elegant as a result. SHORT-TERM SOLUTION? Help could be at hand – if only more ship registry officials knew where to look. Regulation 1(3) of Annex I of ITC 69 states – arguably, in effect – that where there are “novel” aspects of a vessel’s design these aspects can be ignored when calculating Gross Tonnage. There is a small number of precedents for this in the context of trading ships, but this loophole does not appear to have been exercised when assessing yachts. This is surprising given that the latter are usually, almost by definition, full of novel features be they aesthetic elements or technical innovations. While there is Regulation 1(3) is written in vague terms, individual ship registries’ determination as to what “novel” means is definitive. Article 11 of ITC 69 makes it clear that tonnage certificates must be accepted at face value by other port states. It is perhaps surprising how this apparent loophole hasn’t been exploited more – especially by those registries marketing themselves at large yacht owners. But it would be better to change the rules than bend them. LONG-TERM SOLUTION The shortcomings of ITC 69 have been raised with the International Maritime Organisation (IMO), over the years, in respect of various types of cargo ships. Yet the convention has yet to be amended. Ship registries and owners have observed that too little or too much tonnage tax is being paid relative to other vessels of a similar displacement – depending on the point of view. The IMO’s view is that it doesn’t control tonnage tax and is unable to disallow the use of the gross tonnage in its calculation as this is a matter for individual port authorities. The most promising alternative has been mooted by the Australian government. Known informally as the “maritime real estate” and more formally as “Register Tonnage”, this is simply the length overall x breadth x summer draught. This seems fair as ports can charge ships on the basis of the amount of the port they take up, and the amount of dredging required. Yacht owners will need to work with trading ship owners in order to bring pressure to bear on the IMO. The procedure for amending the ITC 69 is particularly lengthy and involved. But surely worthwhile if yacht owners are going to put an end to this bureaucratic tail waging a very expensive dog. CONCLUSION No one system of measurement is going to satisfy all owners. ITC 69 is a compromise which has endured where numerous previous regimes have not. From a regulatory perspective, for nearly all trading and passenger vessels size doesn’t matter: all regulations will apply. And rightly so. Crew have every right to work in a safe and comfortable environment, and third parties have every right not to suffer the effects of collisions and pollution. But large, crewed yachts are different. Very few even existed when ITC 69 was drafted. Their crew live in comfortable quarters and are well paid (competition for the most able crewmembers ensures this). It can’t be right for yacht designers to be working around a figure to which vessel measurements form just one part, and which in any event attempts to satisfy the needs of a trading shipping community from a bygone era. It will be useful for Members to engage with ship registries at the outset regarding, via the Club Secretary, about Regulation 1(3) and what it could mean for the design of their yacht. Return to top Thank you to all our Members who provided perspectives for this white paper. It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. 8 February 2019 Last revised minutes 4 Reading time minutes 4 Reading time 8 February 2019 Last revised It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Gross Tonnage (GT) is the key factor in determining which regulations apply, and this is vital to ensuring that insurance policies remain valid . GT is based on the total enclosed volume of the yacht and is derived from historical measurements used for taxation. The use of GT as a regulatory threshold can lead to compromised designs as owners and designers aim to minimize ongoing mangement costs. There is a loophole in the regulations that allows "novel" aspects of a yacht's design to be ignored when calculating GT, but this option has not been widely utilized. A potential alternative to GT is "Register Tonnage," which considers the physical dimensions of the yacht, and, as owners, perhaps we should engage with ship registries and pressure the International Maritime Organisation to change the regulations. You can also read about Language of Luxury Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Language of Luxury Questions or comments? Please contact us

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%

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

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

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

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Answers to questions often asked about The Owners Club, the worldwide association of superyacht owners. By pooling expertise and experience, we’re making ownership easier, more transparent and better value. Home About FAQs / / Any Questions? Have a question? Just contact us . Some regularly asked questions are set out below. Contact Us How do I become a member? Membership so far has been on an informal basis. To meet the needs of today’s rapidly growing numbers of owners and their representatives, we are now working towards online onboarding. This will allow immediate access to the Club’s suite of standard documents and specialist guidance. How long has the Club been in existence? The idea of creating the Club was first floated back in 2008. Only recently, with the return to pre-global financial crisis levels of building, and increasing public scrutiny of large yacht ownership, have Members sought to formalise their association. Which yacht broker do you recommend? While brokers play a vital role in the yacht market, we cannot recommend particular brokers. Each brokerage, and each individual broker, has its, his and her advantages and disadvantages in terms of contacts, experience and location. For the sake of simplicity and ease of completion, we would urge would-be buyers to ensure that they are dealing with central sales agents. Can we advertise with you? Yes – as long as your business isn’t selling yachts or any yachting-related goods or services. Members trust the Club to provide information and assistance without fear or favour. As we provide object owner-focused guidance, allowing yachting businesses to advertise might create a conflict of interest. Find out more here . Can I network with Members? If Members agree, the Club may organise social and networking events for Members and their representatives in future. Can you help find me a captain? Crew agencies, aside, our General Secretary is happy to publicise direct crew and shoreside staff vacancies. Just contact us . Can you manage my yacht? No, but Members will soon be able to use the Club’s standard yacht management agreement to contract with third party managers. Indeed, Members may consider that, using the Club’s suite of documents, there may be certain aspects of management which can be undertaken by their own family offices. Why doesn’t the Club use the term ‘superyacht’? It turns out that most of our Members don’t actually like the terms ‘superyacht’, ‘megayacht' or ‘gigayacht’. They generally feel that it isn’t helpful to be seen by authorities and the media as a special type of yacht. They feel there’s a fine line between label and target.

The Owners Club's General Secretary is an English superyacht lawyer. He is a Partner at a leading international law firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. Naturally used to maintaining client confidence, he has also provided expertise on the law and practice of yacht ownership to leading publications and broadcasters. Home About Secretariat / / At Your Service It’s a huge honour to be appointed. Having had many owners and managers as clients over the years, I am only too aware of the issues which need to be addressed. BENJAMIN MALTBY, GENERAL SECRETARY TRUSTED PROFESSIONAL CLUB SECRETARIAT We considered it important to have a regulated professional managing the Club and organising its affairs. We have therefore appointed an English lawyer as our General Secretary. He is a Partner at a leading international firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. Naturally used to maintaining client confidence, he has also provided expertise on the law and practice of yacht ownership to leading publications and broadcasters, including: Truly Independent Leadership FAQs The General Secretary’s role is to operate the Club at a high level, undertake research, provide guidance and draft the documents and agreements essential to yacht acquisition and ownership. Neither the Club nor General Secretary have vested interests in particular third party suppliers. We’re not beholden to particular yachting industry advertisers . So our approach is objective. Our contracts are fair, balanced and conducive to efficient, fuss-free ownership.

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The Owners Club is the worldwide association for the owners of large, permanently-crewed yachts - often known as superyachts. We're pooling our knowledge and resources, to help each other and those looking to build or buy a superyacht. Home Welcome To The Club THE CONFLUENCE OF AFFLUENCE & INFLUENCE How it Started We are the worldwide association for the owners of large, permanently-crewed yachts often known as superyachts. The Club is fearlessly independent and has no connections with particular yacht builders, brokers, managers or suppliers. By pooling expertise and experience, we’re making ownership easier, more transparent and better value. The Club's a wonderful idea and long overdue. I've had teeth for years but that doesn't make me a dentist. I've had yachts for years, but I'm still glad of the opportunity to share knowledge and best practice, and help make ownership less opaque. OWNER, 42M MY GAINING KNOWLEDGE SHARING PASSION Secretariat As owners, we’re asking the same questions, to the same advisers, again and again. Or we’re asking our captains and managers, whose well-intentioned understanding can be out-of-date or based on hearsay. Members are free to consult the Club’s General Secretary about any aspect of ownership, from purchase, through crew employment and regulatory requirements, to a successful sale and on to bigger and better. About time! I can’t always justify taking advice on operational matters. If we can come together to share both expense and experience then that has got to be a good thing. OWNER'S REPRESENTATIVE, 35m SY GUIDANCE ON MATTERS WHICH MATTER With the relevant Members’ permission, we’ve summarised some of the guidance provided previously by our General Secretary, in the form of a handbook, for the benefit of other Members and the wider community. The information may not apply to your circumstances. If you need help in respect of specific situation, please contact us. Contact Us

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Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? Home Handbook White Papers / / Language of Luxury "When I use a word," Humpty Dumpty said, in rather a scornful tone, "it means just what I choose it to mean—neither more nor less." "The question is," said Alice, "whether you can make words mean so many different things." "The question is," said Humpty Dumpty, "which is to be master—that's all." Lewis Carroll, Through the Looking Glass (1871) While there is no legal definition of what a ‘superyacht’ is, this doesn’t stop some unilaterally deciding what it is: > 24 metres in length overall - Superyacht UK > 24 metres in length with full-time captain and crew – Burgess Yachts ≥ 24 metres in loadline length and commercially operated – Warsash Maritime School > 98 feet (29.87metres) in Length - The New Yorker > 30 metres in length – Superyacht Times > 30.48 metres in length overall – Offshore Racing Congress > 45.72 metres in length with a draught of ≥ 3 metres - Port Authority of New South Wales Generally, we know what we mean by the term: a pleasure vessel which, for regulatory reasons and on account of its sheer size, needs a permanent, full-time crew. This is the point at which, irrespective of size, the vessel isn’t just an asset but a place of employment and worker accommodation – all rolled into one. Large yachts, with a full-time crew, have been around since the dawn of the 20th century. But the term ‘superyacht’, and the now lesser-used label ‘megayacht’, have only been in widespread use since the mid-1980s. Looking back at the yachting journals of the 1980s, it’s clear that the terms ‘superyacht’ and ‘megayacht’ were simply applied to distinguish between larger vessels which were owner-operated and smaller ones which were not. It was used by brokers and journalists as hyperbole – long before digital media and online videos allowed size, style and pedigree to speak for themselves. This was an age – let’s not forget – when many owners not only sailed some of the larger yachts themselves but often built or at least fitted them out themselves, too. Fast forward to 2000, and there were still only a fraction of the number of large yachts is use compared to today. It was an industry still largely unknown to those not involved. Most brokers and many captains knew each other. Except for some opportunist paparazzi, most journalists paid little regard. A USEFUL DESCRIPTION To be fair, ‘superyacht’ is a useful term – within the industry itself. When an owner can afford crew, he or she can afford to pay for, say, paint of a higher quality but needing a more exacting application standards. A superyacht insurance policy will take account of the owner’s role as an employer and the vessel’s function as a workplace. But such details can be contained deep within a product’s specification.The term has a kudos all of its own. They are, after all, impressive and effortlessly cool. It makes sense to appropriate the term to distinguish oneself as a services supplier. It adds marketplace swagger – although there has been a tendency, for example, for shipping lawyers with little understanding of the market or business models to label themselves as superyacht lawyers. AN UNWELCOME LABEL? Time and again, however, since the early 2010s, environmentalists – and politicians looking to combine green virtue signalling with the politics of envy – have used the term superyacht in a pejorative sense. Rarely, if ever, do they simply refer to yachts: “ Specifically, we draw attention to assessing aspects of ecological footprints of super yachts [sic], super homes, luxury vehicles, and private jets. Taken together, the construction and use of these items in the United States alone is likely to create a CO2 footprint that exceeds those from entire nations .” Lynch, Long, Stretesky & Barrett: Measuring the Ecological Impact of the Wealthy: Excessive Consumption, Ecological Disorganization, Green Crime, and Justice (2019) “ Among the many possessions of billionaires, large “superyachts” are by far the largest producers of greenhouse gases. ” Barros & Wilk: The outsized carbon footprints of the super-rich (2021) “ Superyacht sale surge prompt fresh calls for curbs on their emissions ” The Guardian , 4 October 2022 “ Superyachts aim to go green – but at what cost? ” Financial Times , 1 September 2022 “ THE SUPERYACHT INDUSTRY IS A SINKING SHIP ” - Extinction Rebellion protestors’ banner unfurled during The Superyacht Forum, 16 November 2022 NOT WANTED & NOT NEEDED Informal discussions with Club Members reveal that many just do not like the term superyacht. It has nowadays, for some, the wrong connotations. It’s become a target as well as a description. A lot of owners neither want nor need the perceived kudos which attaches to the term. In short, they have nothing to prove. Their vessels just happen to be larger than most, more or less in proportion to their net worth. WHERE DO WE GO FROM HERE? Perhaps the industry needs to bite the bullet and do away with the term superyacht. Remember when The Superyacht Report was just called The Yacht Report? Maybe it's time to change back. Yes, rebranding is expensive, but such changes may prove far less expensive than not evolving. Brand refreshment is a regular necessity. When the next one’s due, let’s drop the ‘super’ and just call a yacht a yacht. It’s not about trying to make large yachts somehow less conspicuous. It is about removing the popular and mistaken distinction between yachts and superyachts, and instead viewing one being merely a subset of the other. Return to top Thank you to all our Members who provided perspectives for this white paper. Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? 13 October 2025 Last revised minutes 4 Reading time minutes 4 Reading time 13 October 2025 Last revised Everyone knows what a superyacht is - until they’re asked to define it. The term has no legal meaning, yet countless organisations claim one. A justifiable boast of prestige and craftsmanship, the term “superyacht” has also become a linguistic liability. Perhaps it’s time to drop the “super” altogether? The term 'superyacht' has many definitions, but none in law. The term gained widespread use in the mid-1980s to distinguish larger, crewed vessels from smaller ones. The word has become associated with luxury and prestige. In recent years, however, environmentalists and politicians have used the term in a negative way, linking it to excessive consumption and greenhouse gas emissions. Informal discussions among our Members reveals that many of us feel we neither want nor need the perceived kudos associated with the term. Some suggest doing away with the term 'superyacht' altogether and simply calling them yachts. Rebranding may be costly, but it could be a worthwhile change for the industry to make. You can also read about Cut to the Chase Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Cut to the Chase Questions or comments? Please contact us

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

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 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

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

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

Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Home Handbook White Papers / / Cut to the Chase A RISKY BUSINESS With assets of this size and nature, people buy from people – not companies. Yachts may be advertised by brokerages, but they aren’t sold by them. It’s the individual brokers who do the selling. They often work extremely hard – especially during shows – with an uncertain outcome. They’re patient and diligent, and their commissions are well-earned. They perform a crucial role . THE CENTRAL AGENCY When instructing your broker to sell your yacht, a Central Agency (CA) agreement is imperative. The agreement makes it clear that your broker is in charge of the sale, and will be rewarded no matter who actually sells the vessel (including you – so make sure you have explored your own network first). Your CA can provide a valuation, a marketing plan and produce marketing materials (at their or your expense depending on what you negotiate). At a stroke, scope for argument as to which party was the effective cause of the sale – and so owed commission – is eliminated. Understandably, without a CA agreement in place, most brokers are unlikely to go all-in to prepare the yacht for sale and make every effort to sell: it’s just too easy for third parties to argue that the broker claiming commission wasn’t in fact the (or an) effective cause. Standard form agreements are available, but many of these are poorly drafted, so contact us to have this checked and amended. A pre-determined sales price is often the default setting, but some brokers may prefer a net-to-seller figure, which they can adjust up or down as they see fit. MULTIPLE LISTING SERVICES A Multiple Listing Service (MLS) is a database used by brokers (whether CAs or not) to share their listings, in order to reach a wider audience. MLSs usually have their own public online marketplace, and may supply listings automatically to subscribing brokers’ websites, through an application programming interface (API). The use of MLSs (and certain brokers’ associations require their use) can lead to very broad market penetration for the seller, potentially leading to a quicker sale, but there are drawbacks. Use Google Lens and you’ll find identical images posted by numerous brokers. It's not clear which broker has a direct line of communication with the seller. Where a yacht is listed on a marketplace website (and it’s these which tend to come up first when searching online) it is easy to assume – wrongly – that the broker named in the listing is the CA. The use of API-powered automatic listings may mean that the listing broker knows nothing about the vessel, and may be unaware of the listing itself until an inquiry comes in. The CA’s own website listing, meanwhile, will be languishing well behind on Google simply because the CA’s website’s SEO can’t compete with that of the MLS. The potential buyer is none the wiser. Also, by having the vessel listed everywhere, it's possible that the seller can look somewhat desperate. Nevertheless, once a second so-called ‘buyer-broker’ is involved (i.e. a broker acting for the buyer) they will be entitled to a share (a half or thereabouts) of the commission. Their brokers’ association rules may require it. With chains of communication also stretched, negotiations can become protracted while passions cool and interest fades. CLASS ACTIONS Various class actions have been brought in respect of MLSs. In Ya Mon Expeditions LLC v International Yacht Brokers Association Inc et al , the plaintiff brought an action, in February 2024, against 16 defendants, claiming, in essence, that (in violation of US federal antitrust law) brokers’ associations are requiring members (i) to list all their vessels on an MLS (which may also be owned by that association), and (ii) to follow non-negotiable commission-splitting rules. Ya Mon claimed that “ most buyer-brokers will not show vessels to their clients if a seller is offering a lower buyer-broker commission, or will show vessels with higher commission offers first ” meaning that “ sellers are incentivized when making the required non-negotiable offer to procure the buyer-brokers’ cooperation by offering a high commission ”. Ya Mon also claimed that the defendants’ business practices are anti-competitive, with buyer-broker commissions being about 4% to 5% which is artificially elevated beyond where they would be in a free market. In Defosey v Boats Group LLC et al , a plaintiff brought another class action, in May 2024, against some 18 defendants, making broadly the same claims as Ya Mon , arguing that broker associations’ rules “ force sellers to pay a portion of the commission … to the buyer-broker, someone who provided no service to the sellers ” and, as the commission paid to the buyer-broker is not subject to negotiation between the buyer and his/her broker, such rules prevent competition among buyer-brokers based on their commission rates. A similar case was pleaded in Magna Charter LLC v Boats Group LLC et al . At the time of writing (October 2024) Ya Mon is ongoing, while Defosey and Magna have been terminated, presumably because these have been settled or consolidated with other class actions. MLSs made a lot of sense where potential buyers would drop by their local harbourside brokerage and might have been interested in a vessel details of which weren’t displayed in the window. But they make less sense in a world where most buyers look online, and could reach out directly to the CA – if only they understood the pitfalls of not doing so, and knew where to look. FAKE LISTINGS Incredibly, some brokers will post on their own website, or an MLS, without even having been appointed as CA. Maybe they've had just a conversation with a friendly captain. Indeed, with so much at stake, truly unscrupulous brokers might list your yacht for sale without your broker’s permission – copying photos and plans regardless of copyright infringement. But a sales lead is a sales lead (assuming he or she has been qualified as being a bone fide UHNWI which doesn’t always happen) and such unethical business practices can be overlooked. If you see your yacht advertised with other brokerages, check to see that your CA agreement has permitted this. Unauthorised listings must be removed as soon as possible – before the content is indexed by search engines. PROPOSED SOLUTION In some cases, a commission of 10% can be perfectly reasonable – especially given the sheer amount of time, effort, outgoings and risk involved. The signing of CAs are widely (and proudly) publicised within the large yacht sector, with press releases circulated on LinkedIn and some specialist media outlets. Ideally, buyers would check through these to make sure that they’re dealing with the CA, and negotiate directly with them. Yet, seemingly, they don’t. Many buyers won’t even know what a CA is or does. They will see a yacht advertised and (not unreasonably) make inquires. As soon as they have done so, the advertiser will often have become what the law calls an “effective cause” and will be entitled to some of the commission – over and above any broker association rules requiring payment. The additional step added by the use of buyer-brokers causes delays and miscommunications – especially where there’s a mix of time zones and first languages. As well as educating would-be buyers as to the role and importance of the CA, the solution is surely to list as many CAs as possible, in one place. The CA agreements will need to be checked, prior to listing, in confidence, by a lawyer (the key information contained in the agreements (i.e. the name of the vessel and its registered owner) is freely available to the public anyway. If a potential buyer wants as second opinion on the asking price, an independent valuation can be obtained. Lawyers and surveyors are there to advise the buyer on legal and technical aspects. Return to top Thank you to all our Members who provided perspectives for this white paper. Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. 16 October 2024 Last revised minutes 5 Reading time minutes 5 Reading time 16 October 2024 Last revised Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Brokers perform a vital role i n yacht sales, with Central Agency (CA) agreements protecting commissions and streamlining the process. By contrast, while supposedly broadening market reach, Multiple Listing Services (MLSs) can lead to confusion and delays. Class actions have been brought against MLSs in the United States. The proposed solution is to independently authenticate and centralise CA listings, maximising efficiency and transparency. You can also read about Deposits Reimagined Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Deposits Reimagined Questions or comments? Please contact us

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

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 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 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

Connect to us your way regarding any aspect of The Owners Club - by email, WhatsApp or through LinkedIn. Feel free to run anything past us regarding buying or building a yacht or superyacht, or any aspect of owning, managing or selling. Plus anything to do with superyacht crew recruitment and employment. Home / Contact Reach Out CONNECT YOUR WAY Feel free to drop us a line gensec@theownersclub.org Connect with the General Secretary on LinkedIn here Chat directly with the General Secretary on WhatsApp here Follow our LinkedIn page here

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

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

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

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

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