The exposure to risk experienced by some investors was highlighted by the imprisonment of investment adviser Mark Sinnott and the disappearance of investment broker Tony Taylor in May and August 1996.

During Synnott's court case it emerged that the Ballsbridge-based adviser defrauded clients out of more than £2 million. Synnott managed to convince customers to entrust their money to him and then squandered in months sums they had accumulated from years of work. He was sentenced to four years and three months and was the first company director to be jailed for fraudulent trading.

Following the disappearance in August 1996 of Tony Taylor, one of the best known investment brokers in the State, it emerged that he had lost up to £2.5 million of investors' funds due to his failed investment companies.

Investors had placed funds with Taylor and been promised highly attractive rates of return. Fresh investments were used to pay earlier investors. Among those who lost out was the Society of St Vincent De Paul, which had invested more than £180,000 which was to be used to run a holiday home in north County Dublin. When the controversy broke, the Irish Brokers' Association (IBA) was criticised by the then Minister of State for Commerce, Science and Technology, Mr Pat Rabbitte. He said he had first learned of problems with Taylor's companies from the British regulatory authority, and not the IBA.

The IBA, for its part, said that when it was approached by two complainants, it had advised them to bring their plight to the attention of the Department of Enterprise, Trade and Employment. The complainants had chosen not to. The IBA had feared it might be sued if it informed the Department. In December the IBA wrote to the Department asking to be relieved of its role in regulating investment brokers. The Central Bank took over the role in January.

This year it became clear that investors had to be vigilant when dealing with the major financial institutions as well as when dealing with smaller, broker-type operators.

First, the National Irish Bank story broke, with allegations that unauthorised offshore bonds sold by the bank had been used by customers anxious to hide funds from the Revenue. That was followed by allegations that improper excess charges were applied by the bank to some customers' accounts and that when this practice came to the attention of senior management, the funds taken were not returned.

In June the Minister of State for Enterprise, Trade and Employment, Mr Noel Treacy, initiated an inquiry following allegations of misselling of insurance policies by Irish Life. The allegations centred on the practice of "churning" whereby sales staff encourage investors to cash in old policies and take out new ones despite the fact that this might be costly to the investors. Sales staff increase their commission earnings through the practice.

The company denied the charges. The former Insurance Ombudsman, Ms Paulyn Marrinan Quinn, said churning was not confined to any one company and was found "across the board". The inquiry into Irish Life and the insurance industry generally, is ongoing.