The superyacht industry is a global business synonymous with luxury, exclusivity and wealth. While it has made significant strides in many areas, it has also been marred by corruption and unethical practices. As professionals in this industry, we must unite to combat these outdated methods and advocate for a culture of fairness and ethical conduct. It’s time to hold accountable those who fail to comply with legal and ethical standards, ensuring that the superyacht industry reflects the values it purports to uphold.

The power of ethics in business
Ethics serve as a compass, guiding us to distinguish between what we are legally allowed to do and what is morally right. As members of the yachting community, we recognise the importance of integrity in business. By rejecting bribes, commissions and kickbacks, we not only strengthen our moral standing but also foster a competitive environment that ultimately benefits everyone involved.

Addressing the elephant in the room: corruption and complacency
The prevalence of corruption in the superyacht industry is alarming. Many professionals have witnessed or heard of backhanders, hidden commissions and envelopes of cash changing hands. These unethical practices continue to persist, with some competitors still offering kickbacks while ethical bodies like MYBA often turn a blind eye, despite their stated commitment to maintaining the highest level of ethical conduct.

Fortunately, a cultural shift is underway, with more industry professionals adopting a higher ethical stance against corruption. Upholding integrity and transparency is essential for the longevity of our industry, ensuring the trust of clients who expect the highest standards of service.

The MYBA contract and the role of yacht management companies
The Mediterranean Yacht Brokers Association (MYBA) contract places the responsibility for advance provisioning allowance (APA) management directly on yacht owners and their captains. This requires them to actively ensure ethical and transparent spending. Captains are responsible for overseeing every expenditure from the APA, and failure to do so could lead to accusations of negligence or breach of fiduciary duty. If a captain suspects unethical practices, they must take action or risk being held accountable. 

Yacht management companies play a critical role in this process, needing to establish clear guidelines and standards to protect both captains and owners from legal repercussions. Here are several ways these companies can support their captains:

 1. Establish clear reporting channels: Yacht management companies must create formal processes for captains to report suspicious activity. This allows them to voice concerns without fear of retaliation, safeguarding both the captain and the owner from potential lawsuits or disputes.

2. Mandate anti-corruption policies for suppliers: All yachts should require that their suppliers provide clear anti-corruption and anti-bribery policies. This ensures that suppliers operate ethically and prevents inflated pricing due to hidden commissions. Captains should not allow charter brokers to place orders on their behalf unless the entire process is transparent and allows sufficient time for the captain to obtain alternative quotes. This approach fosters accountability and ensures that the best interests of the client are prioritised.

3. Regular monitoring of APA expenditures: Companies should conduct routine audits of APA spending to identify irregularities early. This proactive approach can catch potential issues before they escalate.

4. Enforce pre-approval for purchases: Implementing a policy that requires all APA expenditures to receive pre-approval from captains enhances transparency and accountability.

5. Provide training for captains: Educating captains about their legal responsibilities and equipping them with the necessary tools to manage the APA effectively is vital. This training can help captains navigate potential pitfalls and protect themselves from liability.

Legal implications of bribery and corruption
Payments made to crew, brokers or other staff from suppliers without the knowledge of the charter guest or owner are illegal. Despite this clear breach of ethical and legal standards, such practices have become commonplace within the industry. Suppliers often openly advertise their commission payments, and many brokers seem oblivious to the legal implications of these arrangements. This has led to a culture where such unethical practices are endemic.

The risks associated with these activities cannot be overstated. The ramifications could include legal action, loss of reputation and a significant decline in client trust. 

Bribery, which involves offering, giving or promising a financial or other advantage in exchange for improper performance, is a serious offence under various anti-corruption laws, such as the UK’s Bribery Act 2010. Notably, the Act’s reach extends beyond the UK, encompassing anyone with a close connection to the country, such as residency or control over a UK-based company.

In addition to criminal prosecution, parties involved in bribery can face civil liability and lawsuits for any resulting losses. This further highlights the need for strict adherence to ethical practices.

The path forward: encouraging ethical conduct in the superyacht industry
Promoting lasting change within the superyacht industry requires collective action from captains, management companies and other professionals. We must actively discourage bribery and corruption by implementing clear policies, educating crews and staff on legal implications, and ensuring transparency in all transactions.

Fostering a culture of fairness, transparency and trust is essential to steering the superyacht industry away from corruption and toward a bright, sustainable future.

The time for change is now
As stewards of the superyacht industry, we bear the responsibility for upholding ethical standards and demanding transparency in all aspects of our business. The time for change is upon us, and it begins with each of us taking a stand against corruption and embracing a culture of integrity.

By promoting ethical conduct and fair play, we can help shape an industry that thrives on trust and accountability, paving the way for a sustainable and prosperous future for all stakeholders. Let us come together to create a superyacht industry that exemplifies the best in luxury, service and professionalism, free from the stain of corruption.

The journey towards a more ethical superyacht industry begins now. It’s time for every professional within this community to take a stand, ensuring that our values reflect the integrity we wish to see in the industry. Together, we can drive the change needed to uphold the values we cherish in this prestigious sector.

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