Miffed and structured products

The Markets in Financial Instruments Directive will come into play in November. But critics say the directive has been pushed through with scant regard for structured products, and warn of damaging unintended consequences. John Ferry asks whether retail investors will end up paying the price for the increased regulatory burden

The Markets in Financial Instruments Directive (Mifid) kicks in from the beginning of November. The aim of the European Union's flagship regulatory system is to boost investor protection and help open up financial markets across Europe. But, as is always the case when a major new external force is applied to financial markets, unintended consequences appear. Market participants become prone to new incentives that skew their behaviour in unforeseen ways, changing the dynamics that link different