Ring-Fencing
/ˈrɪŋˌfɛnsɪŋ/
Definitions
- (n.) The legal or financial practice of separating assets, liabilities, or funds to protect them from claims or risks associated with other parts of a business or entity.
The company applied ring-fencing to safeguard the pension fund from creditors.
- (n.) A regulatory measure that restricts the use of certain capital or resources to ensure financial stability or protect consumers.
Ring-fencing rules require banks to separate retail banking activities from riskier investment operations.
Forms
- ring-fencing
Related terms
See also
Commentary
Ring-fencing is commonly used in corporate and regulatory contexts to isolate risks; drafters should specify the extent and mechanism of separation clearly to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.