Odaily reported that Japan’s Financial Services Agency announced on June 19 a partial business suspension order against moomoo Securities. Under the order, the company must suspend the solicitation and acceptance of new account openings from June 19 to September 18, a period of three months. moomoo Securities is the Japanese subsidiary of Futu Holdings, and the regulatory action focuses on its new-account operations and internal management.
In addition to the partial suspension order, the agency issued a business improvement order. It requires moomoo Securities to clarify where responsibility lies, including responsibility involving management, and to formulate a corrective plan to prevent a recurrence. According to the disclosure, the company engaged in improper conduct including false explanations to customers about the scope of application of Japan’s Nippon Individual Savings Account system, known as NISA.
The announcement also listed multiple internal management problems. These included a long-running absence of suspicious transaction checks and reporting, as well as insufficient cybersecurity measures. Japan’s Financial Services Agency has therefore combined a three-month halt on solicitation and acceptance of new account openings with requirements covering accountability, remediation planning and internal control gaps.