Atty. Jesus G. Dureza

August 12, 1980 Atty. Jesus G. Dureza Suite 115, Gempesaw Bldg. Anda St., Davao City Sir : This has reference to your letter to our office-in-charge, Davao City, dated January 11, 1980, which was referred to this Commissioner regarding the investment scheme of LNCI MANAGEMENT CONSULTANTS, INC. In connection therewith, you posed the following queries: cdlex 1. Whether or not the subject corporation is duly registered with the Commission? 2. Whether or not the investment scheme of the corporation, whereby the latter guarantees to the prospective investors return on investments after the lapse of twelve (12) months, authorized by the Commission? 3. Are there guidelines set up by the Commission in to protect the public from possible fraudulent scheme? Coming to your first query, please be informed that verifications from the Commission will show that no such entity is registered, either as a corporation or a partnership. Your second query will be answered by the Commission in the negative. Insofar as your third query is concerned, please be informed that the Commission is enforcing several statutes designed to protect the investing public, specifically Commonwealth Act No. 83, as amended, otherwise known as the Securities Act, Presidential Decree No. 902-A and other related statutes regulating offers or sales of securities to the public. Please be guided accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department