It is tempting to think that the second iteration of the Markets in Financial Instruments Directive, known as Mifid II and due for implementation in January 2017, has nothing to say to custodians.

While Mifid I was primarily aimed at sellside firms including the likes of investment banks and interdealer brokers, it would be a mistake to be complacent. Mifid II, like many of the regulations introduced since the financial crisis, aims to enhance investor protection, and custodians, as safe keepers of client assets, cannot ignore it.