A few years ago I ran a large salesforce. One lesson I learned is that the best salespeople could always adjust their behavior to maximize their income under any new bonus scheme. After you realize this fact, you spend ten minutes coming up with the monthly bonus scheme and two days checking that the anticipated behavior of the salespeople is consistent with the best interests of the company. Then you release the new bonus scheme.
A story in Pieria, "Show Us. The Money", reminded me of this lesson about salespeople...and many other people. The story talks in part about how Wall Street types everywhere in the world adjust their behavior in the face of new government regulation. In the face of constraining regulation, motivated buyers and sellers of financial instruments find new ways to satisfy a demand. The more successful the market is to find new ways around the regulation, the greater the supply of the new financial instrument and the greater the likelihood that asset pricing becomes distorted. When the volume of asset traded becomes large and pricing of the asset becomes distorted, the government has a new problem to consider regulating.
I see no evidence that the government considers how markets will react in the face of regulation. I believe that governments tend to be looking at history when they draft regulation and do not anticipate how the individuals in a market will change the way they operate.