Futu Holdings: CSRC Plans to Impose $271 Million Fine on Futu

BlockBeats News, May 22: Futu Holdings announced today that the company has received an investigation notice and a pre-notification of administrative penalty from the China Securities Regulatory Commission and its Shenzhen branch (CSRC). The CSRC pointed out that certain Futu entities in mainland China and Hong Kong conducted securities business, public fund sales, and futures business in mainland China without obtaining the required licenses or approvals, violating the Securities Law, Securities Investment Fund Law, and the Futures and Derivatives Regulations of the People's Republic of China.

The CSRC intends to order the relevant companies to correct or cease such activities, confiscate illegal gains, and impose a fine. The proposed total fine is approximately RMB 1.85 billion (about $271 million). Additionally, the CSRC intends to impose a personal fine of RMB 1.25 million (about $183,575) on the company's founder and CEO, Mr. Li Hua. Futu Holdings stated that the proposed fine is still subject to further procedures and the final decision of the CSRC.