Futu responds to media reports on data privacy

New data privacy laws set to take place in China this November has seen the official People's Daily website point fingers at Futu Holding  for facing face regulatory risk, according to Reuters. The article said that firms such as Futu that help mainland Chinese individuals invest in overseas markets such as the US and Hong Kong could violate data privacy rules and hold compliance risks. Since then Futu shares traded down approximately 14%.

In response to the report, Futu has said that it has “noted that a certain Chinese media outlet questioned the ability of certain online brokers”. Futu reiterated that regarding the rectification opinions put forward by the “Special Task Force on the Regulation of Apps” in July 2019, Futu contacted the Task Force immediately thereafter and had completed all the rectification work in satisfaction of the relevant opinions and regulatory requirements by 2 August 2019.

Futu also emphasised that since its founding, it has made the protection of personal information and data its top priority.

The company has been strictly complying with applicable laws and regulations, and maintained regular self-inspection to ensure compliance. Futu has also engaged external law firms and professional cybersecurity teams to conduct regular cybersecurity studies, examinations and inspections so as to optimise its systems and boost its risk prevention capabilities.

Regarding Chinese laws and regulations on data protection, Futu said it has always been closely monitoring the latest regulatory developments and optimising its compliance practices. Futu said it is subject to similar data and privacy protection requirements in other markets in which the company operates, including the United States and Singapore.

“The company has always been, and will continue, actively communicating with regulators, strengthening internal training to enhance employee’s awareness on personal information protection, and honing its capabilities of safeguarding personal information,” it said.