According to ChainCatcher, citing Nikkei News, Japan’s Financial Services Agency announced on June 19 that it had issued 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 through September 18, a period of three months.
Regulator Requires Accountability and a Remediation Plan
Alongside the partial suspension, the regulator also issued a business improvement order. The agency required moomoo Securities to clarify where responsibility lies, including responsibility at the management level, and to prepare a remediation plan designed to prevent a recurrence of the problems identified.
The disclosed issues include improper conduct such as providing customers with false explanations about the scope of eligibility under Japan’s Nippon Individual Savings Account system, known as NISA. The company was also found to have multiple internal management problems, including long-running deficiencies in suspicious transaction checks and reporting, as well as insufficient cybersecurity measures. moomoo Securities is the Japanese subsidiary of Futu Holdings.