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Theme

Partners' direct lines

Corpus Legal

Finance and trusts

Vehicles and security that separate the asset from the risk of the operating business.

In short

  • Risk of the operating business
  • The settlor's own creditor

Ring-fenced estate

The asset

The boundary is the ring-fenced estate: neither route reaches the asset.

What it decides

A ring-fenced estate separates the asset from the risk of the business and from the settlor’s own creditors. It is what allows a project to be financed without committing the rest of the estate, and what gives the counterparty security that can be enforced without going to court.

Scope

  • Commercial trusts for asset administration
  • Security trusts and real estate trusts
  • Fiduciary mandates and ring-fenced estates
  • Movable security and mortgages
  • Contracts specific to the financial sector
  • Compliance in dealings with supervised entities
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