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Finra Series-7 Exam - Topic 7 Question 41 Discussion

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?
C) this is permissible
A) this cannot be implemented because the level is below Reg T
B) this cannot be implemented since maintenance requirements are only 25% of equity for long positions
D) this action must be approved by the FRB and FINRA

Finra Series-7 Exam - 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?

Show Suggested Answer Hide 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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Ocie
8 months ago
Wait, can they really set it that low? Sounds off.
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Daniela
9 months ago
B makes sense, maintenance is lower.
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Marlon
9 months ago
I think C could be right, but it seems risky.
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Marjory
9 months ago
Totally agree, 50% is the minimum.
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Winifred
9 months ago
A is correct, can't go below Reg T.
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Martha
9 months 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.
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Tina
9 months 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.
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Johna
9 months ago
I remember something about maintenance requirements being lower than initial margin, but I can't recall the exact numbers. Could B be right?
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Flo
9 months ago
I think the house rule can't be lower than Regulation T, so maybe A is correct? But I'm not entirely sure.
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Gary
9 months 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.
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Dominic
9 months ago
I'd definitely spend a minute carefully tracing through each box and arrow. Don't rush, but don't overthink it either.
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Roy
10 months ago
I'm pretty sure the information is reported in the event logs, so I'll go with option C.
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Talia
10 months 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!
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