Japan’s Financial Services Agency issued a three-month partial business suspension order against moomoo Securities on June 19, 2026, with the measure remaining in place through September 18. During that period, the brokerage is barred from soliciting or accepting any new account openings. The regulator also ordered the company to improve its operations, identify management responsibility, and submit a concrete plan to prevent a repeat of the violations.
Misleading sales explanations tied to NISA eligibility
According to the FSA, moomoo Securities committed serious breaches in both internal controls and sales practices. The most prominent issue involved false explanations given to investors: the firm promoted financial products that were not eligible for NISA while describing them as NISA-eligible products. The regulator treated that conduct as a material compliance problem under Japan’s Financial Instruments and Exchange Act.
The investigation also found long-running weaknesses in anti-money laundering controls. The company failed to properly verify and report suspicious transactions, according to the FSA. On top of that, its cybersecurity protections were found to be inadequate. Japan’s Securities and Exchange Surveillance Commission had already pointed out these issues and recommended administrative action before the FSA issued its final order.
Expansion in Japan faces a direct setback
moomoo Securities is headquartered in Shibuya, Tokyo, and is owned by Nasdaq-listed Futu Holdings. The brokerage has been expanding in Japan through its mobile app, which has recorded more than 2 million downloads in the country. Its growth strategy had centered on low-fee trading for U.S. equities aimed at retail investors.
The latest order strikes at that expansion path by shutting off new account intake. For a digital brokerage still building market share, that is a hard constraint. The action also shows how closely Japanese regulators are examining foreign online brokerages on sales compliance, AML controls, and cybersecurity.