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ring fence/fencing

Ring fence/fencing occurs where a firm's assets or other funds are set aside for a given purpose and cannot be spent elsewhere.

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ring fence/fencing

Ring fence/fencing occurs where a firm's assets or other funds are set aside for a given purpose and cannot be spent elsewhere.

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This is often done for regulatory, tax, or financing reasons. Also used to refer to a protection-based transfer of assets, often via offshore accounting, to lower tax burdens. When selecting a destination, careful scrutiny of the destination's legal and regulatory environment is needed.