European Commission 7 April 2016, Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to 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 (Text with EEA relevance. )

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Commission Delegated Directive (EU) 2017/593, adopted on 7 April 2016 pursuant to Articles 16(12) and 24(13) of Directive 2014/65/EU (MiFID II), supplements the MiFID II framework by establishing detailed rules on three subject matters: the safeguarding of client financial instruments and funds (including segregation, depositing, use of client assets, title transfer collateral arrangements, and governance arrangements); product governance obligations for both manufacturers and distributors of financial instruments (including target market identification, scenario analysis, and periodic review); and the conditions governing the payment or receipt of fees, commissions, or monetary and non-monetary benefits (inducements), including specific regimes for independent investment advice, portfolio management, and research payments. Member States were required to transpose the Directive by 3 July 2017 and apply its provisions from 3 January 2018, in alignment with the transposition and application dates of Directive 2014/65/EU. The Directive applies to investment firms, UCITS management companies acting under Article 6(4) of Directive 2009/65/EC, and alternative investment fund managers acting under Article 6(6) of Directive 2011/61/EU.AI