“Many management companies are also brokerage houses,” he explains. “If paid a monthly fee to manage a vessel, there are those who would question whether the same company is fully motivated to sell that vessel, and lose it's stream of monthly management fees as a result.
“It's also common industry knowledge that many management houses receive commissions and referral fees from shipyards, brokers and other contractors for directing work their way. Unless these payments are declared to their clients, these arrangements clearly represent a conflict of interest, as the payments could change the advice managers give to their owners as they are no longer totally independent.”
While yacht management aims to make crews’ lives easier, reduce running costs and improve the efficiency of operations, Passmore believes that some may not be serving this purpose. “Some management companies are not doing that at all and in some cases they are doing the opposite,” he explains. “For many owners, the one-stop, in-house arrangements work but I think the way that the industry is currently set up there aren’t a lot of options for owners to do anything other than that. I think the management sector does need a bit of a shake up.”
With regards to the company’s latest collaboration with Dubois, Passmore is positive about the rewards it will bring to all parties. “8 Yachts stands to benefit from a close link up with the premium brand that Dubois is, and the clients they have,” he says. “And Dubois stand to benefit by having their fingers on the pulse with how their owners are enjoying ownership, during a time when they would otherwise have little contact with them. The owners also stand to benefit because they have access to proactive management that genuinely cares about them.”