Fletcher and Hudson
Fiduciary Services

Fletcher and Hundson Fiduciary Services

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The Legal Theory,
Operational Mechanics, and Insurance Architecture Behind Our Fiduciary Mandate and Partial Escrow Framework

Fletcher and Hudson operates within a legal construct bridging civil law mandato and partial escrow principles. Client funds are held in quasi-escrow, with beneficial title vested in the principal, pending satisfaction of all contractually enumerated release conditions under the operative policy..


Principal protected.
Policy in force. No exceptions.

Legal Shields Against
Non-Delivery and Fraud

01

AML Architecture and FATF Compliance in Fund Administration

Fletcher and Hudson's AML protocol adheres fully to FATF Recommendation 16, ICC Publication 745 on trade-based money laundering controls, mandating verified counterparty identification, full transaction audit trails, and proactive suspicious activity reporting on every mandate.

• FATF Recommendation 16 wire compliance
• OFAC and UN sanctions screened
• KYC verified on every counterparty
• ICC Publication 745 TBML controls applied

02

CC Rules and Non-Delivery Protection Under International Law

The non-delivery protection applied by Fletcher and Hudson incorporates ICC Institute Cargo Clauses (A), providing full indemnification for entire package non-delivery, short delivery, and misdelivery, evidenced strictly by authenticated carrier and terminal documentation.

• ICC Clause (A) fully applied
• Non-delivery endorsement in full effect
• Short delivery covered under ICC
• Misdelivery claims documented and indemnified

03

Insurance Interlock: How the Policy Triggers Fiduciary Release

The insurance policy and the fiduciary mandate are not independent instruments. Every release condition and claim notice provision is cross-referenced, making the policy a mandatory precondition to any lawful remittance under the mandate

• Policy absence blocks fund release
• Active claim suspends remittance immediately
• Coverage confirmation required before disbursement
• Loss payee designation governs claim settlement

One Framework. Every Risk. Fully Addressed.

01

Constructive Trust

Funds are held in constructive trust, with beneficial ownership vested solely in the principal pending release.

02

Instructed Mandate

All fiduciary actions are strictly confined to the express written parameters of the executed mandate instrument.

03

Subrogation Rights

Upon loss settlement, the insurer assumes subrogation rights against liable carriers, terminals, and responsible third parties.

04

Beneficial Ownership

Beneficial ownership of held funds does not transfer to the mandatario at any point during mandate.