Sir Callum McCarthy, chairman of the UK's Financial Services Authority, today launched a stinging attack on the European Union's market in financial instruments directive, known as Mifid.

He said: 'It is deeply unsatisfactory that UK financial services firms face major changes, with the associated costs, for an initiative which has been subject to no comprehensive EU cost-benefit analysis to assess the specific contribution it might make to unlocking the prize of a more integrated European capital market.