PANews reported on June 4th that, according to the Nikkei, Japan's Securities and Exchange Surveillance Commission (SESC) is considering recommending to the Financial Services Agency (FSA) that administrative penalties be imposed on moomoo Securities, a Japanese subsidiary of Hong Kong-based Futu Holdings. The regulator believes that the company has misrepresented or falsely advertised financial products that do not qualify for Japan's NISA (Non-Taxable Investment Specified) as NISA-compliant products, exposing deficiencies in its internal compliance and management systems.

Moomoo Securities is a subsidiary of Futu Holdings, a Hong Kong-listed online brokerage firm, in Japan. If the Supervisory Commission formally recommends disciplinary action, the Japanese Financial Services Agency may subsequently impose business improvement orders or other regulatory measures on the company.