Malta

Ganado Advocates is pleased to announce the appointment of Lorraine Poole and Robert Taylor-East as new Partners within the firm’s banking and finance practice and corporate finance and tax practice, respectively. Their individual expertise and professional dedication further strengthen the firm’s commitment to delivering the highest standard of legal services across our key practice areas. Lorraine has extensive experience in complex cross-border transactions and advises on a wide spectrum of syndicated financing arrangements, including acquisition and project finance, in addition to broader transactional work. She is also a key person for prime brokerage, securities lending, repos and derivatives, being responsible for the firm’s industry opinions to organisations such as ISDA, and providing bespoke advice on specialised issues such as close-out netting on insolvency and collateral arrangements. Robert provides tax advisory services across a broad range of sectors and in relation to varied transactions, and is well regarded for his practical, solutions-driven approach in an increasingly complex fiscal landscape. He brings both technical expertise and pragmatism to his new role, supporting individuals and businesses alike. André Zerafa, the firm’s Managing Partner, commended their diligence, commitment, and professionalism in their work and their interactions with colleagues and clients. He emphasised that their achievements exemplify the collective excellence expected from lawyers at the firm, and these appointments will contribute to the success of the firm.

We are pleased to announce that we have joined the Sino International Professional Advisory Council (SIPAC) as the exclusive member firm for Malta. SIPAC is a global community of legal and compliance professionals across 40+ jurisdictions. The council aims to provide high-quality professional support for outbound legal and compliance matters for Chinese companies. Annalise Papa, a Partner within our Corporate practice, is representing the firm within this network. We look forward to strengthening our ties with all our fellow SIPAC member firms and to better serve the SINO-business and legal communities with their needs and interests in Malta.

It is with pleasure that Ganado Advocates announces Catherine Formosa’s promotion to Of Counsel, effective 6th March 2025. Catherine has been a key member of the firm’s banking and payments practice, where her expertise has greatly contributed to the firm’s ability to guide clients through complex legal matters in the regulatory, corporate governance, financing and capital markets spheres. Catherine brings to the role a wealth of experience, having spent over 16 years in the banking sector, including a notable tenure as Group Company Secretary of one of Malta’s significant banks. Her extensive background has allowed her to build a comprehensive understanding of both corporate and retail banking operations, making her an invaluable resource for clients in the financial services landscape. She is also a visiting lecturer and an examiner at the Faculty of Laws, University of Malta. Andre’ Zerafa, Managing Partner of Ganado Advocates, expressed his congratulations, noting, “Catherine’s promotion to Of Counsel is a testament to her exceptional legal acumen and the significant contributions she has made to our banking and payments team over the years. Her deep industry knowledge continues to play a fundamental role in advancing our practice. We look forward to her continued success in this new role.”

The tragic sinking of the British-flagged Bayesian yacht off the coast of Sicily, which resulted in the loss of seven lives, has sparked debates on the adequacy of safety regulations for pleasure yachts compared to their commercial counterparts. The incident underscores disparities in the regulatory frameworks governing these categories of yachts, raising questions about whether lighter oversight for pleasure yachts remains justified in the face of larger pleasure yachts being manufactured. Regulatory Differences Between Pleasure and Commercial Yachts The safety regulations for pleasure yachts and commercial yachts differ primarily because of their intended use. Pleasure yachts are privately owned vessels used exclusively for non-commercial purposes. They are governed by less stringent rules, with minimal requirements for inspections, onboard safety equipment, and no crew certifications. Owners are often given discretion to implement safety measures, resulting in significant variability in preparedness across the sector. Commercial yachts operate for profit, often through charters. They are subject to rigorous international and national regulations such as the Maltese Commercial Yacht Code or equivalent national codes, the Maritime Labour Convention, 2006 (MLC) and the IMO’s safety and training conventions (such as SOLAS, MARPOL and STCW). The key regulatory differences are the following: Certification and Inspection: pleasure yachts are seldom inspected and there is no requirement for compliance with commercial codes. On the other hand, commercial yachts must undergo regular inspections and surveys to meet rigorous safety, structural, and operational standards, and adherence to certain international conventions may be mandatory. Crew Qualifications and Rights: onboard pleasure yachts, crew qualifications are often less demanding, as it is normally up to the owner to ensure that they are engaging the services of adequate personnel. Crew onboard commercial yachts must hold advanced professional qualifications appropriate to the vessel’s size and operation, and which are in compliance with STCW (International Convention on Standards of Training, Certification, and Watchkeeping). The MLC, which applies to all seafarers working onboard ships and yachts which are ordinarily engaged in commercial activities, sets out the right of such seafarers to decent conditions of work, including minimum age, employment agreements, hours of work and rest, accommodation, food and catering, health and safety protection, training and qualifications. By limiting the application of this Convention to seafarers working onboard commercial vessels, crew members working onboard pleasure yachts are not being afforded the same treatment and level of protection as those onboard commercial yachts. Life-saving and Firefighting Equipment: requirements for pleasure yachts are regulated by general safety regulations in accordance with European standards, and typically include personal flotation devices, flares, and fire extinguishers. Specific equipment depends on the vessel’s size and jurisdiction. Commercial yachts must comply with higher standards, including advanced firefighting systems, life rafts, Emergency Position Indicating Radio Beacons (EPIRBs), and sophisticated communication equipment to ensure passenger and crew safety. The Safety Shortcomings of the Bayesian Yacht While investigations into the sinking of the Bayesian are still ongoing, reports suggest several shortcomings which contributed to the incident: The vessel’s doors and hatches were reportedly left open, allowing rapid water ingress during a storm. The yacht’s large mast acted as a sail during the storm, increasing its instability. While permissible for a pleasure yacht, such features would require additional stability tests for commercial certification. The Bayesian’s crew may not have had training comparable to what is required on commercial yachts. The Bayesian lacked compartmentalized safety features typical of commercial vessels. Does It Make Sense to Regulate Pleasure Yachts Differently? The underlying rationale for not treating these two types of yachts equally is that commercial vessels were traditionally larger and manned by more crew, while pleasure yachts were historically smaller, and their use was limited to local or regional waters. This led to the assumption that pleasure yachts posed minimal risks compared to commercial yachts operating on international voyages with larger capacities. With the growth of the yachting industry and the ambition of owners to have larger yachts, this distinction no longer has the same value as it once did in the past as certain pleasure yachts are rivalling their commercial counterparts in size, carrying dozens of passengers and requiring quite a few crew members. This convergence calls for a reassessment of whether the current regulatory framework is sufficient. Conclusion While a one-size-fits-all model may not be practical, it is high time for debate as to whether smaller yachts up to a certain size that can compete with commercial yachts should be subject to certain standards. The focal point should not be on the use of the yacht, but rather on its size and its capability to carry out international voyages. Once this is done, we can then begin to look into how other segments of pleasure yachts should be regulated to slowly reduce the disparity and ultimately ensure safer seas. This article was first published in The Times of Malta on 02/02/2024.