On 10 September 2020, the Securities and Exchange Commission (SEC) issued an advisory on HOTON RETAIL AND SERVICES INCORPORATED (“HOTON”), warning the public of the individuals and groups involved in such activities. The advisory defines the activities behind the scheme, and advises the public to take extreme precautions in joining or investing in these groups.
(UPDATE) On 8 January 2021, SEC lifted the above mentioned advisory, with conditions, on HOTON RETAIL AND SERVICES, INC. and issued the following order:
"The Securities and Exchange Commission wishes to announce to the public that HOTON RETAIL AND SERVICES, INC.(“HOTON”) has entered into a settlement agreement with the Commission.
An Advisory against HOTON was posted at the SEC website on 10 September 2020 in view of the report that it is offering to public its Franchise Partnership Program, which partakes of the nature of securities in the form investment contract under Section 3.1 of the Securities Regulation Code (SRC).
A Show Cause Order was issued on 26 October 2020 on why HOTON should not be cited for violation of Section 8.1 of the SRC.
Thereafter, HOTON proposed an offer of settlement on 26 November 2020 amounting to Eight Hundred Fifteen Thousand Pesos (Php815,000.00) or equivalent to 50% of the imposable penalty in accordance with Section 55.1 of the SRC and Rule 55.1 of the 2015 SRC Implementing Rules and Regulations.
In its meeting of 10 December 2020, the Commission En Banc resolved to approve the settlement offer and lift the Advisory issued against HOTON. Hence, on 11 December 2020, an Order was issued directing HOTON to pay the amount as approved by the Commission. In compliance therewith, the amount of EIGHT HUNDRED FIFTEEN THOUSAND PESOS was PAID by HOTON on 28 December 2020.
WHEREFORE, the above-captioned case is now deemed settled without any determination of fault or guilt on the part of HOTON RETAIL AND SERVICES, INC. Moreover, this Order effectively lifts the Advisory issued against the company.”
Coins.ph does not endorse nor is affiliated in any way with HOTON or its products and services.
In general, we urge our customers to be extra diligent when engaging and transacting with different firms, including requesting a copy of their authority and regulatory approval to offer such services, and to act within our User Agreement.