Japanese regulators plan to take administrative action against moomoo Securities, a Japanese subsidiary of Futu Holdings.

On June 4th, according to the Nikkei, the Securities and Exchange Surveillance Commission (SESC) of Japan is considering recommending administrative action to the Financial Services Agency (FSA) against moomoo Securities, the Japanese subsidiary of Hong Kong-based Futu Holdings. Regulators believe the company exhibited flaws in its internal compliance and management systems by misrepresenting or falsely advertising financial products as eligible for Japan's NISA (Nippon Individual Savings Account) program when they were not. moomoo Securities is the Japanese subsidiary of Hong Kong-listed online brokerage Futu Holdings. If the SESC formally proposes disciplinary action, the Japanese FSA may subsequently issue business improvement orders or other regulatory measures against the company.