large commercial yacht code

Large Yacht Code version 2 and version 3

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• LY2 and LY3

Information on LY2 and LY3

We are very proud to be the originators of the Large Yacht Code, which is the internationally recognised standard for all large yachts.

The MCA first produced a Code of Practice for the Safety of Large Commercial Sailing and Motor Vessels, or 'LY1', in 1997. It provides unique and internationally recognised safety standards for construction, operation and manning of large yachts. The Code applied to vessels in commercial use for sport or pleasure, which are 24 metres in load line length and over, do not carry cargo and not more than 12 passengers.

The Code sets standards of safety and pollution prevention, which are IMO accepted equivalents to the standards set by the relevant international conventions applicable to vessels of this size.

However due to advances in technology and changes in practice it was recognised 'LY1' would need to be revised, so work commenced on 'LY2'.

Large Commercial Yacht Code (2) or 'LY2'

The Large Commercial Yacht Code, or LY2, came into effect on 24th September 2004. Chartering is a commercial use of a vessel therefore all yachts engaged in chartering activities have to comply with the Code. A significant change in LY2 was the introduction of the Short Range Yacht. LY2 was replaced by LY3 in 2013.

Large Commercial Yacht Code (3) or 'LY3'

LY3 , was launched at the 2012 Monaco Yacht Show and came into effect on 20 August 2013. It introduced equivalent requirements for large yachts to the requirements of the Maritime Labour Convention (MLC).

It also included updates for the requirements for masts and rigging for sailing yachts and the latest technology in radio communication equipment.

LY3 has been replaced by the Red Ensign Group yacht code which came into effect on 1 January 2019. 

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Yacht classification definitions

The merchant shipping sector is ruled by safety regulations developed since the beginning of the 20th century, and is familiar with international conventions such as SOLAS, MARPOL and Load Lines. But the application of common safety requirements to pleasure vessels is something relatively new – a continuous work in progress – and is very much dependant on the service and the flag of the yacht.

Defining the problems

Definitions do not help. How often have we read of large yachts, superyachts, megayachts, gigayachts or other bombastic adjectives? How many times have we mentioned MCA, RINA, and Lloyd’s, without having a clear idea of who’s doing what?

A good starting point for understanding the subject is to clarify the main definitions and the roles of the main players:

Large yacht

A large yacht is a pleasure vessel with a load line length equal to or over 24m. Almost all the flag administrations have adopted safety codes dedicated to large yachts and this is, therefore, the only definition having a universal meaning in the international regulatory framework of yachts.

Commercial yacht

A motor or sailing vessel in commercial use (i.e. charter) for sport and pleasure, carrying no cargo and not more than 12 passengers.

Private yacht

A pleasure vessel solely used for the recreational and leisure purpose of its owner and his guests.

Flag administration

The government of the state whose flag the yacht is entitled to fly . This administration sets the safety regulations, manning requirements and fiscal aspects relevant to the yacht registration.

Different flag administrations can inspect the safety aspects of yachts with their own inspectors (see MCA for example) or delegate this activity partially or totally to other recognised bodies such as the classification societies.

The main flag authorities in the yachting industry are: The UK-MCA, Cayman Islands, Isle of Man, Malta, the Marshall Islands, Italy and Luxembourg.

Classification societies

Organisations that establish and apply technical standards in relation to the design, construction and survey of ships.

Classification rules are developed to assess the structural strength and integrity of the essential parts of the hull, the reliability and function of the propulsion, steering systems, power generation and all the other features installed on board which contribute to guarantee the main essential services.

In addition to this ‘third party check’ function, class societies carry out statutory duties on behalf of the major flag administrations in accordance with specific delegation agreements signed with each government.

The main class societies involved in yachting are: American Bureau of Shipping, Bureau Veritas, Det Norske Veritas, Germanischer Lloyd, Lloyd’s Register, and RINA.

Large yachts: Applicable rules and certificates

Private yachts

The mandatory requirements for these boats are very light. For the majority of flag states, a registration survey and a tonnage measurement, carried out by an authorised surveyor, are sufficient.

The only mandatory international conventions are those relevant to the marine environment: MARPOL and the Anti-Fouling System Convention.

The International Convention for the Prevention of Pollution from Ships (MARPOL) is intended to eliminate the intentional pollution and to minimise the accidental pollution of the marine environment caused by harmful substances.

The Anti-Fouling System Convention’s purpose is to eliminate the presence of harmful substances for the marine environment contained in anti-fouling paints applied to ships.

Classification

While classification is not mandatory, building and maintaining a private yacht in class is the only evidence that the boat has been designed, constructed and operated in compliance with appropriate technical standards. It is therefore highly desirable, especially in relation to insurance and re-sale purposes.

Commercial yachts

All flag administrations require commercial yachts to be certified in accordance with a specific large yacht safety code.

The most popular of these safety codes, and the first that was developed, is the MCA Large Commercial Yacht Code (LY2) published in 2004. It replaced the Code of Practice for the Safety of Large Commercial Sailing and Motor Vessels (LY1) published in 1997.

LY2 is applied by the Red Ensign Group Flags (UK, Cayman Islands, Isle of Man, Bermuda, Gibraltar, British Virgin Islands, etc.) and is recognised as a reference standard for all the yachting industry.

Other flags have developed similar codes. Luxembourg, Italy, Marshall Islands, Malta, Belize and The Netherlands are some examples.

While introducing a stricter set of rules and regulations compared to private yachts, commercial registration offers yacht owners the possibility of making a profit from the chartering activity of their boats, and allows them to take advantage of all the other benefits of a commercial operation (in particular VAT exemption on the purchase, sale, bunkering, provisions, dry-docking, and others).

Mandatory certificates

The number and type of the mandatory certificates depends on the size of the vessel; the following is an indicative list:

• International Tonnage Certificate : A measurement of the internal volumes of the yacht expressed in gross tons (GT). This measurement should not be confused with displacement tonnage, which quantifies the weight of a vessel.
• Large Yacht Code Certificate : Covers life-saving appliances, fire protection and means of escape, navigational and signalling equipment, intact and damaged stability, manning and crew accommodation.
• Class Certificate : This mainly deals with the yacht’s hull, machinery, electrical equipment and outfitting.
• International Load Line Certificate : This certifies the weather-tightness of the yacht.
• Safety Radio Certificate : This is applicable if gross tonnage exceeds 300GT This concerns the radio communication and distress installations.
• MARPOL Annex I Certificate : This is applicable if gross tonnage exceeds 400GT This deals with the disposal of oil and bilge water from machinery spaces.
• MARPOL Annex IV Certificate : This is applicable if gross tonnage exceeds 400 or the yacht is certified to carry over 15 persons. This deals with the disposal of sewage from ships.
• MARPOL Annex V : This is applicable to all ships. It covers the disposal of rubbish.
• MARPOL Annex VI : This is applicable if gross tonnage exceeds 400GT as well as to all main and auxiliary engines with a power exceeding 130kW. It concerns the emissions from main and auxiliary engines (NOx and SOx).
• Safety Construction and Safety Equipment : These are additional prescriptions on machinery, electrical parts, life-saving and navigational equipment for yachts with a gross tonnage above 500GT.
• International Safety Management Certificate : This is only applicable to yachts having a gross tonnage greater than 500GT. A certified management company is requested to carry out this service, preparing operational manuals, procedures for drills, and taking care of the maintenance of the yacht and its installations.
• International Ship and Port Security Certificate : This is only applicable to yachts having a gross tonnage greater than 500GT and deals with the anti-piracy certification. A certified management company is requested to provide the ashore assistance and establish on-board procedures and operational manuals.

The GT Factor

The gross tonnage value (GT) is a key issue, not only as a reference for the registration fees applied by the different flag administrations, but also because it determines whether an international convention, rather than a particular safety standard, applies to a yacht.

The table below summarises how the conventions and relevant certificates come into force depending on the gross tonnage of the yacht. In particular, the following values may have a critical impact:

300GT: In many codes, when you reach this value the yacht must be certified in unrestricted service (stricter requirements regarding stability, load line and life-saving appliances).

400GT: This is the threshold for almost all the environmental conventions such as MARPOL and Anti-fouling System.

500GT: This is the threshold for the application of the SOLAS Convention, meaning stricter requirements on machinery, safety systems, materials of construction, fire protection, life-saving appliances and navigational equipment. Furthermore an external certified management company is requested for the ISM and ISPS certifications.

The tonnage issue could also arise on existing yachts when undertaking major refits or modifications, in that any change to the internal volumes of the boat – such as adding enclosed deckhouses or superstructures, or modifying the hull transom or bow – will modify the tonnage value with the risk of subjecting the yacht to stricter mandatory rules.

UPDATE: Since this article was originally published, LY2 has been superseded by Large Commercial Yacht Code Revision 3 (LY3) .

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Commercial Yacht Code

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The Commercial Yacht Code was developed in line with international regulations and other industry standards and caters for yachts of 15 metres in overall length and that do not carry cargo and do not carry more than 12 passengers. Over the years the Code has been proving very successful with leading IACS recognised Classification Societies and major yacht builders. The Code was developed in such a way to facilitate it’s use by surveyors as well as non-technical personnel involved in the day to day management of yachts and superyachts.

An initial survey is required to draw up records of compliance with the code. Alternative arrangements may be discussed between the surveyor and the Administration through a transparent and recorded procedure. Upon complying with the Code, the Administration issues a Certificate of Compliance to Trade as a Commercial Yacht enabling operational registration. Compliance surveys may be carried out by one of the appointed ship surveyors or by a recognised organisation.

All yachts below 24 metres in length have to undergo an intermediate survey whilst yachts larger or equal to 24 meters in length have to undergo annual surveys.

The Certificate of Compliance is renewable every five years and surveys may be carried out by an Appointed Ship Surveyors or by a Recognised Organisation,

During a renewal survey a survey similar to the one carried out during initial survey must be carried out.

• MS Notice 164 - Revision of the Commercial Yacht Code 2020
• Commercial Yacht Code 2020
• Synopsis of amendments to the Malta Commercial Yacht Code

RMI Yacht Code 2021

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The RMI Yacht Code (“ MI-103 ” or the “Code”) was first published in 2013. The RMI Yacht Code 2021, as amended through August 2023, is the most significant update to the Code since 2013. The RMI Maritime Administrator revised the Code reflect changes in today’s yacht market, not only in terms of the increasing size and complexity of yachts being designed and built, but also to cover recent industry developments.

The Code provides a commonsense and practical approach to evolving safety and technical issues while being supported by a strong worldwide yacht technical group.

The RMI allows, through its national legislation and the Code, the registration of commercial yachts, private yachts, and passenger yachts (PAXYs). It also allows for RMI flagged private yachts to obtain a compliance certificate for temporary or limited charters (yacht engaged in trade (YET) / private yacht limited charter (PYLC)). The Code, in conjunction with the relevant international conventions to which the RMI is a party, sets the standards and substantial equivalencies for safety, security, pollution prevention, and seafarer accommodations appropriate to the size of the yacht, taking into consideration instances where it is not reasonable or practicable to comply fully with international conventions.

All yachts to which the Code applies must be annually inspected by an Appointed Representative or Classification Society as applicable, to verify compliance with the Code. The  RMI Yacht Compliance Requirements ( MI-103A ) provide additional guidance on national and international compliance requirements for commercial yachts, private yachts, PAXYs, YETs, and PYLCs.

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Red Ensign Group Yacht Code - Part A | Marine training course

Learn the construction, safety and operational standards of reg a.

Red Ensign Group Yacht Code (REG Code) was implemented to replace two codes: Part A to Large Yacht Code 3 (LY3) & Part B to Passenger Yacht Code (PYC). 

REG A includes requirements for yachts that are 24 metres and over in load line length, are in commercial use for sport or pleasure, don’t carry cargo and don’t carry more than 12 passengers. 

Enroll in this course and learn the design criteria, construction standards and other safety measures for pleasure yachts to which this Code apply.

Our team remains available to provide you with any further information you may need. Contact us by writing to [email protected] .

Duration and price

Online course

Duration:  1 day

Price: EUR 300 (plus VAT, if applicable)

Physical classroom at Greece's facilities

Duration:  1 day

Price:  EUR 330 (plus VAT, if applicable)

Course objectives

Content summary.

• Introduction to the RedEnsign Group
• Application to the code Part A
• Other applicable international conventions and national legislation
• Construction and stability requirements for pleasure yachts carrying up to 12 pax (24m and above)
• Weathertight integrity
• Machinery and electrical installations
• Structural fire protection
• Life saving appliances and means of escape
• Radio and navigation equipment
• Requirements for anchor and cables
• Accommodation and recreational facilities
• Protection of personnel
• Manning, Certification and Hours of Work
• Surveys & Certification

Target audience

- Shore personnel of maritime companies managing large commercial yachts

- Crew of large commercial yachts

Certificate

Request further information, explore the global marine training calendar courses, download the full marine training portfolio.

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Frequently Asked Questions

Every Cayman Islands Ship shall carry insurance cover against risks of loss or damage to third parties. All vessels with a gross tonnage of 1000 or greater are additionally required to carry third party (Protection and Indemnity (P&I)) insurance to meet their liabilities under the Bunkers Convention and evidenced by a Certificate issued by the CISR. Please see Shipping Notice: CISN 01/2012 (Rev 1.1) regarding Insurance Requirements for Cayman Islands Vessels.

If the vessel maintains a Certificate of Code Compliance (LY2/LY3) the vessel should maintain the manning levels as indicated in the Minimum Safe Manning Document. If it is privately operated the yacht can replace the Certificate of Code Compliance with a Statement of Compliance if it does not wish to comply with the manning requirements. Please also see Shipping Notice 02/21012 regarding Manning for yachts carrying 12 passengers or less on the commercial part of the register as "Commercial Vessels" or which are engaged in trade.

Yes. See MLC Guidance Letter

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.

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

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, Maritime Labour Certificate (when applicable) 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.

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

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 LY3 requirements.

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.

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.

See Matrix of International Conventions Applicable to Yachts.

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.

When the yacht is engaged in trade/commercial activities, such as chartering-out. Further details are available in Shipping Notice CISN 14a/2004 (2010 Version) - Large Private and Commercial Yachts Compliance with Regulations

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. LY3 is the abbreviated term for the revised Code, which came (or comes, depending on the time of the web-site update) into effect in August 2013.

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.

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• Business and industry

LY2: the large yacht code

LY2 was the 2005 update of the original 'code of practice for the safety of large commercial sailing and motor vessels', known as LY1.

LY2 is a previous version of the code of practice for the safety of large commercial yachts under 3000 gross tonnage. This code has been replaced by the Red Ensign Group Yacht Code

• 17 April 2014

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