Finra Exam Series-7 Topic 7 Question 41 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 41
Topic #: 7

[All Series-7 Questions]

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

Show Suggested Answer

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.

by Golda at May 05, 2022, 06:00 PM

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