What does Ring Fence Fencing mean? Read on to discover the definition & meaning of the term Ring Fence Fencing - to help you better understand the language used in insurance policies.
Ring Fence Fencing
Where a firm's assets or other funds are set aside for a given purpose and cannot be spent elsewhere. 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.
We hope the you have a better understanding of the meaning of Ring Fence Fencing.