Japanese regulators are considering administrative action against Moomoo Securities, a Japanese subsidiary of Futu.

CoinFeed 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 it impose administrative penalties on moomoo Securities, a Japanese subsidiary of Hong Kong-listed online brokerage 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 Hong Kong-listed online brokerage Futu Holdings in Japan. If the SESC formally recommends penalties, the FSA may subsequently take business improvement orders or other regulatory measures against the company.