Kito-Kiko Variety Shop

November 21, 2023 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based information received and gathered by the Commission, an online platform under the name "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." headed by its owner REXCEL ROSE CERNERO SISON is found to be engaged in investment-taking activities in the Philippines which is NOT AUTHORIZED by the Commission. To show: HTcADC Based on information gathered from reports, inquiry, and data from open sources, "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." claims to be a general merchandise online shop which offers different kitchenware and home plasticware. It also offers different "PASALO SLOTS" which offers different investment packages to wit: CAIHTE As posted online, KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP., through its owner REXCEL ROSE CERNERO SISON, is offering securities to the public by enticing them for an opportunity to grow their money as high as 11% per month plus 5% or 8% rebate. According to them, a person who invests P20,000 will have a P25,000 February payout; P50,000 turns P75k May payout; P100,000 turns P140k April payout; P100,000 turns P150k May payout; for take all: P400,000 8% MONTHLY PAYOUT. To show: aScITE Applying the Howey Test , 1 "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." so-called "pasalo slot" investment packages being offered before the public is synonymous to an investment contract which is clearly under the Commission's regulatory power. Their activities involving the offer and sale of securities to the public where their investors need not exert any effort other than to invest or place money in its scheme in order to earn profit should be registered and controlled by the Commission. "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." is NOT registered with the Commission as a corporation or partnership. FURTHER IT IS NOT AUTHORIZED to solicit investment/placements from the public nor to issue investment contracts and other forms of securities since it has not secured prior registration and/or license from the Commission as prescribed under Secs. 8 and 28 of the Securities Regulation Code . And that any person or entity intending to offer and sell its investment contract are required to secure the necessary registration and/or license from the Commission as well. DETACa Per records of the Commission, "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." has NOT REGISTERED any securities pursuant to Sections 8 and 12 of the Securities Regulation Code including REIT Investment. Likewise, the Commission has not issued a Permit to Sell Securities in favor of "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." Further, said entity has not filed nor has any pending application for registration/permit to sell securities. Also, based on the records of Commission, "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." is not a registered issuer of mutual funds, exchange traded funds and proprietary/non-proprietary shares or membership certificates and time shares pursuant to Sections 8 and 12 of the Securities Regulation Code and therefore not licensed to offer or sell such securities to the public. Therefore, "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." lack of prior registration pertaining to its securities with the Commission makes its activities illegal. Hence, the public is strongly advised NOT TO INVEST or STOP INVESTING in any scheme offered by "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." or such other entities similarly engaged in offering and sale of investment contracts without prior registration from the Commission. The public is again reminded that investing in such an unregulated entity lacks investor protection because it is not covered by prudential and market conduct requirements applicable to licensed and authorized operations. Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, Financial Products and Services Consumer Protection Act (FCPA) and such other rules and regulations enforced by the Commission . Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, uplines, influencers, endorsers, abettors and enablers of such unauthorized entities like the operators of the Facebook Page or other similar social media of "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." in selling or convincing people to invest in their Co-Franchise program offered including solicitations and recruitment through the internet may likewise be criminally prosecuted for violation of Section 11 of the FCPA and Section 28 of the SRC and both penalized separately with a maximum fine of Five Million Pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC. In the same manner, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public similar to and the operators of the "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014). HEITAD The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be assessed correspondingly. Should you have any information regarding any investment solicitation activities by any individual or group of individuals representing "KITO-KIKO VARIETY SHOP/KITO-KIKO, INCORP." please send your report to the EIPD at [emailprotected]. For the guidance of the public. Makati City, November 21, 2023. Footnotes 1. Power Homes Unlimited vs. SEC (G.R. No. 164182, February 26, 2008).