The Irish Financial Services Regulatory Authority (IFSRA) is considering developing a code of conduct on advertising and marketing of tracker bonds and similar investment products, amid fears that consumers are being duped by financial institutions.

The financial watchdog has set up a public consultation to review the marketing and sale of tracker bonds following a number of complaints from consumers about the possibly misleading nature of some products.

It is likely that the code, if introduced, will require product sellers to give consumers more documentation on their investment.

Financial institutions have sold a flurry of fixed-term bonds, promoting them as capital-guaranteed, low-risk investments.

But the bonds typically have numerous hidden charges and complex terms that make it extremely difficult for investors to achieve the "headline" returns advertised.

IFSRA's consumer director, Ms Mary O'Dea, said yesterday that sales material should be clear about the risks involved.

"Some trackers offer capital guarantees; however, this may not cover the entire capital invested because of costs and charges associated with the product and may only be available when the tracker reaches maturity," she said.

The regulator is also seeking suggestions from the public, consumer groups and the industry on how "health warnings" might be included next to past performance figures and projected rates of return.