The European Commission has adopted a Delegated Directive supplementing MiFID II regarding the safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits (i.e. inducements). The aim of the draft Delegated Directive is to further specify the following under MiFID II: (i) the safeguarding of clients' financial instruments and funds; (ii) product governance obligations for investment firms manufacturing or distributing financial instruments (or both); and (iii) the provision or reception of inducements. The Delegated Directive will now be considered by the EU Council and the European Parliament.