what is ring fencing
DEFINITION of 'Ring Fence'. A protection-based transfer of assets from one destination to another, usually through the use of offshore accounting. A ring fence is meant to protect the assets from inclusion in an investor's calculable net worth or to lower tax consequences.Moves to ring fence an asset are often called ring fence trades.Next Up. ring fence is meant to protect the assets from inclusion in an investor's calculable net worth or to lower tax consequences.