Hong Kong’s SFC imposes HK$3.5m fine on FIL Investment Management for regulatory breaches

Maria Nikolova

The violations include unlicensed dealing in futures contracts, delay in reporting the breach to the regulator as well as submitting incorrect information during an application.

Hong Kong’s Securities and Futures Commission (SFC) today announces that it has imposed a HK$3.5 million fine on FIL Investment Management (Hong Kong) Limited (FIMHK) for regulatory breaches including unlicensed dealing in futures contracts, delay in reporting the breach to the SFC as well as submitting incorrect information during an application.

According to the SFC’s findings, between August 2007 and July 2018, FIMHK executed 6,738 trades in futures contracts for its overseas affiliates with an aggregate transaction value of about US$39.7 billion without the required licence. FIMHK identified the suspected breach in a review conducted between May and June 2018 but only reported the incident to the SFC in August 2018, after it had obtained external legal advice.

The regulator also found that FIMHK, when applying to the SFC for a new fund authorization in March 2017, submitted an incorrect information checklist based on an outdated template. Due to this, certain required information was not completed or provided in the checklist submitted to the SFC.

The internal investigation conducted by FIMHK and the reviews performed by an independent reviewer engaged by FIMHK revealed certain deficiencies and weaknesses in FIMHK’s internal controls and systems, which suggest that FIMHK did not implement satisfactory and effective systems and controls to ensure the accuracy of information submitted to the SFC at the relevant time.

In determining the disciplinary sanctions, the SFC considered a variety of factors, including that:

  • there is no evidence to suggest that FIMHK’s failures were intentional or deliberate;
  • there is no evidence of clients having suffered any financial loss;
  • FIMHK engaged an independent reviewer to review its internal controls in relation to the fund application process and took steps to rectify the deficiencies identified;
  • FIMHK took remedial actions to strengthen its internal systems and controls;
  • FIMHK co-operated with the SFC in resolving the SFC’s concerns; and
  • FIMHK has an otherwise clean disciplinary record with the SFC.

Read this next

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

Reviews

Transform Your Financial Future with ARKMining’s Innovative Blockchain Solutions

Learn About Daily Passive Income Through Cryptocurrency with ARKMining: A Guide to Secure Practices.

<