QU ESTIDN THREE Rose is a nancial planner who advertises in the local newspaper. As a result of seeing an advertisement. Wei Lee arranges a half hour appointment with Rose. Wei Lee is 23 years old and has a large inheritance from her grandmother to invest. Wei Lee is specifically seeking a safe but protable investment. At the financial planning appointment, Rose tells Wei Lee that she should invest all of her inheritance into Dodgy Managed Investment Scheme (MIS) run by Riptoff. Rose told Wei Lee that this is a very profitable business and she could expect a profit return of 18% per annum. Rose did not ask any questions about Wei Lee's personal circumstances. In fact. during the entire interview, Rose did most of the talking. In addition. Rose told Wei Lee that it would be a good idea to borrow more money from the Trust Not Bank Ltd in order to invest. Rose recommended a margin loan which uses Wei Lee's unit trusts in the MIS as security. However. what Wei Lee didn't know and wasn't told, was: ' that Riptoff pays Rose a 12% commission for selling its products; and ' that margin loans are highly risky. After the meeting, Wei Lee decides to invest all of her inheritance into the IleS run by Riptoff. She also decides to take out a margin loan of szoooo and invest this into the Dodgy Ivlls