Discuss Finra Series-7 Exam Topic 7 Question 41

With the Regulation T requirement at 50%, a firm wishes to impose house rules that require a minimum equity of 40%.

Which of the following is true?

Athis cannot be implemented because the level is below Reg T

Bthis cannot be implemented since maintenance requirements are only 25% of equity for long positions

Cthis is permissible

Dthis action must be approved by the FRB and FINRA

Suggested Answer: C

this is permissible. Firms may establish house rules as long as they are at least as strict as the minimum maintenance requirements. Reg T only dictates an initial requirement and does not address minimum equity.

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13 comments · newest first

Ocie 1 year ago

Wait, can they really set it that low? Sounds off.

Daniela 1 year ago

B makes sense, maintenance is lower.

Marlon 1 year ago

I think C could be right, but it seems risky.

Marjory 1 year ago

Totally agree, 50% is the minimum.

Winifred 1 year ago

A is correct, can't go below Reg T.

Martha 1 year ago

D sounds familiar too, but I thought that only applied to certain changes. I guess it could be a possibility, but I lean towards A.

Tina 1 year ago

I feel like I studied this, and it seems like C could be permissible since firms can set their own rules as long as they meet the minimums.

Johna 1 year ago

I remember something about maintenance requirements being lower than initial margin, but I can't recall the exact numbers. Could B be right?

Flo 1 year ago

I think the house rule can't be lower than Regulation T, so maybe A is correct? But I'm not entirely sure.

Gary 1 year ago

I'm a bit confused by this question. The wording is a bit complex, and I'm not entirely sure I understand all the technical details involved. I'll need to read through it a few times to make sure I'm grasping the core issue.

Dominic 1 year ago

I'd definitely spend a minute carefully tracing through each box and arrow. Don't rush, but don't overthink it either.

Roy 1 year ago

I'm pretty sure the information is reported in the event logs, so I'll go with option C.

Talia 1 year ago

Okay, I've got this. The command we need is "show netconf-yang sessions", which will display the details of each active NETCONF session, including the login time. Easy peasy!

Finra Series-7 Exam - Topic 7 Question 41 Discussion