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?
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
C)this is permissible
D)this action must be approved by the FRB and FINRA

Question

Quizplus · Accepted Answer

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.

With the Regulation T Requirement at 50%, a Firm Wishes