Eva is a hard-working electrician in a small suburban community in Alberta where she grew up. At 40 years of age, she is single and renting a basement apartment from a long-time friend. Hard work and a conservative lifestyle have allowed Eva to save $50,000, which she has sitting in a savings account at her local bank.

Last week, her last remaining relative passed away and left her $100,000. The money is the remainder of a larger inheritance that has been passed down from generation to generation in Evas family. Now it has been left to Eva to do with what she wishes. Eva is very cautious about her finances and has very little knowledge about investing.

Eva was advised by her friends and associates to find an investment advisor (IA) and have her money and her inheritance grow in investments that will allow her to retire early. Eva trusted her friends advice and immediately contacted her local investment dealer to set up an appointment with an IA. Very excited, Eva made an appointment with the first available IA.

Not knowing much about investing, Eva has the following questions for the IA.

1. Eva asks her new IA: Who protects me if the bank goes bankrupt?. What should the IA advise her?
2. Eva then asks her IA: What if the investment I buy declines in value? What organization protects me? What information should the IA provide to Eva?
3. Eva then asks her IA: What if I lose money because a mutual fund dealer I invest through goes bankrupt? What organization would protect me, if any?

REQUIRED:

Assume that you are the Investment Advisor. Respond to Evas questions.