The Large Yacht Code in its latest version LY3 is of great importance in defining the level of operation and standard of a vessel. The following is taken from CISR web site and explains in detail what LY3 is .
LARGE COMMERCIAL YACHT CODE (LYC/LY3)
What is the Large Yacht Code?
The Large Commercial Yacht Code (hereafter referred to as ‘The Code’) was developed to enable luxury yachts to operate under an alternative set of requirements given the nature of their use, rather than the unsuited application of conventional Merchant Shipping Regulations. The Code applies to yachts which are 24 metres and over in load line length, are in commercial use for sport or pleasure, do not carry cargo and do not carry more than 12 passengers. The Code is equivalent to the International Maritime Organisation’s (IMO) SOLAS, Load Line & STCW conventions and as such, yachts can be issued with international certificates to enable free worldwide trade under the Cayman Islands Flag.
In 1997, the United Kingdom’s Maritime & Coastguard Agency (MCA) published the first version of ‘The Code Practice for the Safety of Large Commercial Sailing and Motor Vessels’ (LY1), which established a "Code" approach for vessels which were unsuited to the application of conventional Merchant Shipping Regulations. Since its original publication, LY1 made a significant impression on a maritime sector which previously had difficulty in embracing conventional regulation. LY1 enjoyed both national support and international recognition as a standard, breaking new ground both in its inception and methodology. Under LY1, within five years of the ‘Code’ coming into force, the text could be revised. This resulted in LY2, which was published in 2005.
As the large yacht industry developed over the intervening years, it became necessary to issue a new code (LY3) in 2012, which included the new requirement that yachts must comply with the ILO’s Maritime Labour Convention 2006. The Code is continuously developed jointly by members of the Red Ensign Group of Administrations which consists of the United Kingdom and its relevant overseas territories and crown dependencies, of which The Cayman Islands is one.