Per Woofun AI, the Japanese Financial Services Agency has directed moomoo Securities to halt new account solicitation and acceptance services from June 19 through September 18.

Concurrently, the regulator issued a business improvement order requiring the firm to strengthen internal management systems, clarify senior leadership responsibilities, and implement measures to prevent future infractions.

These penalties arise from multiple compliance failures, including providing false explanations to clients and misleadingly promoting non-eligible products as NISA-qualified.

Additionally, the agency cited inadequate network security, insufficient internal controls, and a failure to properly examine and report suspicious transactions. moomoo Securities operates as the Japanese subsidiary of Hong Kong-based Futu Holdings.