Survey and Audit: Large Commercial Yachts FAQs

What is the Code of Practice for Safety of Large Commercial Sailing and Motor Vessels?

This Code of Practice was introduced in 1998 (as an equivalent approach) to address the requirements of SOLAS, International Load Line Convention (LL 66) and the STCW Convention in a yacht-specific manner. IMO Circular letter 1966 dated 27th July 1997 gave effect to the Code as equivalence on an international basis.

How does the Code of Practice for Safety of Large Commercial Sailing and Motor Vessels relate to the term LY1 and LY2?

LY1 is the abbreviated term used to refer to the original Large Commercial Yacht Code which came into effect in December 1998. LY2 is the abbreviated term for the revised Code, which came into effect in September 2004.

When do I need to comply with the Code of Practice for Safety of Large Commercial Sailing and Motor Vessels?

When the yacht is engaged in trade/commercial activities, such as chartering-out.

Can I comply with the Code of Practice for Safety of Large Commercial Sailing and Motor Vessels on a voluntary basis?

Yes, many owners will build to the Code or bring their yachts into the Code, for a number of reasons, including the peace of mind of knowing their yacht complies with an internationally recognised safety standard. Other reasons include vessel resale value maximisation and risk management issues such as risk mitigation.

What International Conventions apply to Yachts?

See Matrix of International Conventions Applicable to Yachts.

What are the requirements for maintaining Large Commercial Yacht Certificates once these are issued?

Large Commercial Yacht Certificates are valid for a maximum of 5 years subject to periodic inspections followed by a renewal survey at the end of the 5 years.

What happens if the periodical vessel inspections are not carried out?

The periodic inspections can be carried out within 3 months either side of the anniversary date, which corresponds to the expiry date of the certificate otherwise the certificate becomes invalid.

Does the yacht have to be on the Commercial Vessel Register to be able to Charter?

No, the vessel may remain on the Pleasure Yacht Register, but the yacht must have valid Large Commercial Yacht Certificates appropriate to the size of the vessel and be manned in accordance with Cayman Manning Regulations and LY2 requirements.

Does a Commercial Yacht have to engage in trade or Charter activities?

No, Cayman does not require that the yacht engage in trade.

Can a yacht switch between Commercial Vessel and Pleasure Yacht Registration on a regular basis?

Yes. However, a yacht can only be issued with one Certificate of Registry at a time. In order for the yacht to be registered as a commercial vessel it must be in possession of valid certificates appropriate to its size. For yachts over 500 GT, this includes, but is not limited to, a Safety Management Certificate, an International Ship Security Certificate, a Continuous Synopsis Record and a Minimum Safe Manning Document. These Certificates must remain valid for the duration of the period that the yacht remains registered as a commercial vessel. The Certificate of Registry which is not in current use must be returned to Cayman but can then be re-issued on application.

Does the MARPOL Convention apply to Yachts?

Yes, MARPOL applies to all vessels, commercial and pleasure, however only yachts over 400 GT are required to be certificated.

Is the COLREG applicable to Yachts?

Yes, the Convention on the International Regulations for Preventing Collisions at Sea (COLREG), prescribes safe measures for visibility, navigation and sound signalling to ensure safe navigation for all users of the world’s oceans.