Japanese regulators are considering administrative action against Moomoo Securities, the local subsidiary of Futu Holdings. The Securities and Exchange Surveillance Commission (SESC) plans to recommend that the Financial Services Agency (FSA) penalize the brokerage unit.
The potential action follows allegations that Moomoo falsely marketed financial products as eligible for Japan’s tax-exempt NISA program. These claims reportedly exposed significant deficiencies in the company's internal compliance and management systems.
If the recommendation is formalized, the FSA could impose measures such as a business improvement order against the firm.