Nomura Holdings Inc. plans to scale back a brokerage venture with messaging app operator Line Group amid a gloomier outlook for the business.

As part of the restructuring, Japan’s biggest securities firm will take over the management of client brokerage accounts while the venture, Line Securities Corp., will focus on foreign-exchange margin trading services, the companies said Monday.

The move marks another setback for Nomura, which had battled losses at the venture as it sought to obtain younger, tech-savvy clients. Last year, it pumped more money into the entity, which was formed in 2019 and offered financial services via smartphones.

Read more: Nomura Pumps More Money Into Loss-Making Trading Joint Venture

“In light of changes in the business environment and the profit outlook for Line Securities’ services, Line Financial and Nomura agreed to the business restructure after considering the optimal allocation of resources,” according to the statement.

The parties will hold talks to prepare for the completion of the overhaul in 2024 and the “beginning of a new Line Securities.”

The impact of the restructuring on Nomura’s earnings will be negligible, a spokesperson said. The company has invested around 24 billion yen ($172 million) in the joint venture.

Line Securities represented a fresh expansion of online business by Nomura after earlier efforts faltered. It folded its internet unit Joinvest Securities Co. into the group’s main brokerage arm in 2009.

(Updates with comment from Nomura in sixth paragraph, background in last)