SIE practice questionmediumMargin Requirements
A customer’s margin equity falls below the required maintenance level. If the firm allows continued trading without a margin call, it is violating:
- AOnly internal firm policy
- BRegulation T and industry margin rules✓ Correct answer
- CFINRA arbitration requirements
- DMSRB advertising rules
Explanation
Why B — Regulation T and industry margin rules
Margin maintenance levels are strictly regulated (Reg T and FINRA/NYSE rules). Allowing trading below maintenance requirement is a regulatory violation, not just internal policy. Arbitration and advertising rules are unrelated.
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