ChainCatcher, citing Nikkei, reported that Japan’s Financial Services Agency announced on June 19 that it had issued a partial business suspension order against moomoo Securities. Under the order, moomoo Securities must suspend the solicitation and acceptance of new account openings from June 19 to September 18, a period of three months.
At the same time, the regulator also issued a business improvement order to the company. The order requires moomoo Securities to clarify where responsibility lies, including responsibility at the management level, and to formulate a corrective plan designed to prevent a recurrence of the issues identified by the authorities.
According to the disclosed information, moomoo Securities engaged in improper conduct including making false explanations to customers regarding the scope of application of Japan’s Nippon Individual Savings Account system, known as NISA. The company was also found to have multiple internal management issues, including a long-term absence of suspicious transaction checks and reporting, as well as insufficient cybersecurity measures. moomoo Securities is the Japanese subsidiary of Futu Holdings.