What is ringfencing?
Ringfencing is a collection of strategies that are used to separate a portion of assets from others for various purposes, but generally with the goal of protecting some subset of assets from the risks associated with the rest. Ringfencing might be used to protect lower tax assets from higher ones, or very safe assets from the risk associated with much riskier ones.
Ringfencing may look like putting some money into reserve accounts, transferring some into different jurisdictions, or sending a portion of funds overseas. This can protect the safest assets from unintended uses, reduce taxes, or even prevent seizure in some cases.