Securities Credit and Regulation B Requirements

B

The question is asking which of the following requirements of Regulation B do not apply to securities credit, which is credit subject to Section 7 of the Securities Exchange Act of 1934 or credit by a broker or dealer subject to regulation under the act. Regulation B is a regulation issued by the Federal Reserve Board that implements the Equal Credit Opportunity Act (ECOA), which prohibits lenders from discriminating against credit applicants on the basis of certain characteristics, such as race, color, religion, national origin, sex, marital status, or age.

Option A states that restrictions regarding information about a spouse or former spouse, marital status, or sex of the applicant do not apply to securities credit. This is incorrect because these restrictions are covered under ECOA, and ECOA applies to securities credit.

Option B states that securities credit is not payable by agreement in more than four installments. This is also incorrect because there is no such requirement under Regulation B.

Option C states that provisions relating to furnishing credit information do not apply to securities credit. This is also incorrect because Regulation B requires that creditors furnish credit information to credit reporting agencies for all types of credit, including securities credit.

Option D states that records retention requirements do not apply to securities credit. This is the correct answer because Regulation B does not contain specific records retention requirements for securities credit. However, brokers and dealers subject to regulation under the Securities Exchange Act of 1934 are required to keep records in accordance with the Act and the rules and regulations adopted under the Act.

Therefore, the correct answer to the question is D.