Securities Lawyers Blog
Our law firm represents individual and institutional investors that have been mistreated by their brokers and brokerage firms, such as Moomoo Financial Inc.. Many investors do not recognize broker misconduct in their accounts, and those that do are often hesitant to seek help. Broker misconduct spans many issues that violate industry rules, including unauthorized trading, breach of fiduciary duty, unsuitable asset allocation, and churning. The attorneys at Gana Weinstein LLP can analyze your accounts and investments to determine if there was misconduct in the handling of your account.
Moomoo Financial is an online broker-dealer offering commission-free trading in stocks, options, and exchange-traded funds through the moomoo platform on web, mobile, and desktop, along with market data, charting, screening, and research tools. Formed in Delaware in 2015, the firm is part of Futu Holdings, and the moomoo platform’s United States operations are headquartered in Jersey City, New Jersey.
Moomoo Financial Inc. – By the Numbers:
- CRD #: 283078
- Regulatory Events: 2
- Arbitration Events: 3
- Broker Employees: 61
Moomoo Financial Inc. – In the News:
FINRA v. Moomoo Financial Inc. (Case #2023078120201) – Since June 2019, Moomoo has failed to have a reasonable supervisory system, including written supervisory procedures (WSPs), concerning Large Options Positions Report (LOPR) reporting. Until March 2023, Moomoo failed to have any system to identify and report reportable options positions of firm customers held in omnibus accounts and, through the present, its supervision of LOPR reporting remains unreasonable. Further, Moomoo failed to report more than 4,000 listed options in more than 20,000 instances. Therefore, Moomoo violated FINRA Rules 2360(b)(5), 3110, and 2010 and is censured, fined $125,000, and has agreed to an undertaking.
FINRA v. Moomoo Financial Inc. (Case #2021072581701) – From January 2020 through the present, Moomoo Financial paid individuals with followings on social media sites (commonly known as “influencers”) to promote the firm in social media communications. Such influencers posted social media communications on the firm’s behalf that were not fair and balanced or made claims that were promissory or misleading. Therefore, Moomoo Financial violated FINRA Rules 2210(d)(1), 2210(e), 2220(d)(2)(A), and 2010. From January 2020 through September 2022, Moomoo Financial failed to have a registered principal review and approve influencers’ static content (such as videos) or options communications prior to posting on social media platforms and failed to review posts made by influencers in online interactive electronic forums. From January 2020 through November 2021, the firm also did not maintain records of its influencers’ communications, the dates the communications were used, or the name of the registered principal who approved the communications or the date of approval (where required). Nor did the firm file options communications with the Advertising Regulation Department of FINRA, where required. From January 2020 through the present, Moomoo Financial also failed to establish, maintain, and enforce a system, including written supervisory procedures (WSPs), reasonably designed to supervise social media communications disseminated on the firm’s behalf by the firm’s influencers and related recordkeeping and filing requirements. Therefore, the firm violated the Securities Exchange Act of 1934 Section 17(a), Exchange Act Rule 17a-4(b)(4), and FINRA Rules 2210(b), 2220(b), 2220(c), 4511, 3110, and 2010. In addition, from January 2018 until December 2021, Moomoo Financial did not provide a copy of the firm’s privacy policy to approximately 450,000 customers at the time the customers opened brokerage accounts at the firm. During that same period, the firm also failed to provide annual privacy notices to those customers. As a result, the firm violated Regulation S-P of the Exchange Act Rule 4 (17 CFR § 248.4), Regulation S-P Rule 5 (17 CFR § 248.5), and FINRA Rule 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.