On 12 July 2023, the European Securities and Markets Authority (ESMA) published a statement addressed to firms which highlights the risks of securities lending and other securities financing transactions (SFTs) in relation to retail client financial instruments and clarifying certain important MiFID II investor protection requirements.  In addition, ESMA describes some practices related to securities lending which are intended to illustrate its expectations about the practical application of the relevant MiFID II requirements, including the expectation that revenues arising from SFTs should accrue to the client. ESMA will continue to monitor the practice of securities lending to retail clients and, if needed, issue further technical advice to the European Commission.