Japan’s Securities and Exchange Surveillance Commission recommended administrative action against Futu Holdings’ local unit, Moomoo Securities. Regulators cited a failure to properly identify suspicious transactions as the primary cause for the disciplinary move.
Futu shares dropped 1.4% to $94.46 in pre-market trading following the announcement.
The Japanese regulatory challenge emerges as Futu navigates a two-year rectification period in mainland China. The company is scheduled to suspend buy orders for mainland clients starting June 12 to ensure compliance with local requirements.