The Japanese Financial Services Agency has ordered Futu Securities' subsidiary, moomoo, to temporarily suspend part of its business, including new account openings, for 3 months.

BlockBeats News, June 19th - According to Nikkei News, the Japanese Financial Services Agency announced on the 19th that it has issued a partial business suspension order to the foreign-owned internet brokerage firm moomoo Securities. The order requires the company to suspend new account opening solicitation and acceptance services from June 19th to September 18th, a period of 3 months. At the same time, the Financial Services Agency also issued a business improvement order, requiring the strengthening of internal management systems, clarification of responsibilities including those of senior management, and the formulation of a business improvement plan to prevent recurrence of issues.

According to the Japanese Financial Services Agency, the company engaged in improper business practices, such as providing false explanations to customers and misleading products that are not eligible for the NISA (Nippon Individual Savings Account) system as eligible. The Japanese Financial Instruments and Exchange Act prohibits solicitation of customers or the conclusion of contracts based on false information. In addition, the company has long failed to examine and report on suspicious transactions, and its network security measures are inadequate, with multiple deficiencies in its internal control systems.

moomoo Securities is the Japanese subsidiary of Futu Holdings, a Hong Kong online brokerage giant listed on the NASDAQ in the United States. It provides services through a mobile app, with downloads in Japan exceeding 2 million times, and has expanded its customer base by promoting low commission fees for U.S. stocks.