The Japanese Financial Services Agency has ordered the subsidiary of Futu, moomoo Securities, to partially suspend operations and halt new account openings for 3 months

According to Nikkei News, on June 19, the Financial Services Agency of Japan announced a partial business suspension order for moomoo Securities, requiring it to suspend the solicitation and acceptance of new account openings from June 19 to September 18, for a period of three months. At the same time, the regulatory authority also issued a business improvement order, requiring the company to clarify the responsibility attribution, including that of management, and to develop a rectification plan to prevent recurrence.

It has been disclosed that moomoo Securities engaged in improper conduct, such as making false statements to clients regarding the applicability of the Japanese Individual Savings Account system (NISA). Additionally, there are multiple internal management issues, including a long-standing lack of suspicious transaction verification and reporting, as well as insufficient cybersecurity measures. moomoo Securities is a subsidiary of Futu Holdings in Japan.