The Hong Kong Securities and Futures Commission fined FIL Investment Management (Hong Kong) Limited – part of Fidelity Investments – HK $3.5 million (approximately US $451,000) for dealing in futures contracts while unlicensed and for using an outdated checklist in connection with an application for a new fund. According to SFC, from August 2007 through July 2018, FIL engaged in approximately 6,700 trades for funds or accounts managed by affiliated companies where FIL had no discretion and for which FIL received compensation from its affiliates on a cost-plus basis. Additionally, charged SFC, FIL failed to disclose this breach to it until August 2018 after learning of it in June 2018. Finally, claimed SFC, “due to inadvertent human errors,” FIL used an incorrect template in an application for a new fund in March 2017, and thus failed to provide SFC certain required information. In determining its sanction, SFC considered that FIL’s actions were not intentional or deliberate, no client suffered financial loss, and the firm utilized an independent reviewer to assess its internal controls regarding its application process and took remedial measures to enhance its internal controls. SFC also acknowledged FIL’s cooperation.