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FINRA Series 24 Full Access
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Question 1 of 30
1. Question
Which of the following statement is true regarding the resignation of members under section 5 of FINRA By-Laws:
Correct
Resignations of members must be filed via electronic process or such other process as the Corporation may prescribe and addressed to the Corporation.
Incorrect
Resignations of members must be filed via electronic process or such other process as the Corporation may prescribe and addressed to the Corporation.
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Question 2 of 30
2. Question
Who has the authority to declare a formal resignation effective at any time?
Correct
Resignations of members must be filed via electronic process or such other process as the Corporation may prescribe and addressed to the Corporation.
Incorrect
Resignations of members must be filed via electronic process or such other process as the Corporation may prescribe and addressed to the Corporation.
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Question 3 of 30
3. Question
Under section 3 of FINRA By-Laws, How many executive representatives are required to be appointed by each member?
Correct
Each executive representative shall maintain an Internet electronic mail account for communication with the Corporation and shall update firm contact information via the NASD Regulation Web Site or such other means as prescribed by the Corporation.
Incorrect
Each executive representative shall maintain an Internet electronic mail account for communication with the Corporation and shall update firm contact information via the NASD Regulation Web Site or such other means as prescribed by the Corporation.
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Question 4 of 30
4. Question
Which of the following statement is not correct regarding executive representative under section 3 of FINRA By-Laws:
Correct
Each member shall appoint and certify to the Secretary of the Corporation one “executive representative” who shall represent, vote, and act for the member in all the affairs of the Corporation.
Incorrect
Each member shall appoint and certify to the Secretary of the Corporation one “executive representative” who shall represent, vote, and act for the member in all the affairs of the Corporation.
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Question 5 of 30
5. Question
In response to the application filed by the dealer or exchange, Within how much time the Commission shall grant registration by order or institute proceedings to determine whether registration should be denied:
Correct
A broker or dealer may be registered by filing with the Commission an application for registration in such form and containing such information and documents concerning such broker or dealer and any persons associated with such broker or dealer as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors.
Incorrect
A broker or dealer may be registered by filing with the Commission an application for registration in such form and containing such information and documents concerning such broker or dealer and any persons associated with such broker or dealer as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors.
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Question 6 of 30
6. Question
The proceedings initiated by the Commission in response to the application filed for registration by the Dealer or exchange, within how much time such proceedings shall be concluded:
Correct
At the conclusion of such proceedings, the Commission, by order, shall grant or deny such registration.
Incorrect
At the conclusion of such proceedings, the Commission, by order, shall grant or deny such registration.
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Question 7 of 30
7. Question
Under Section 15 of the Securities Exchange Act of 1934, within six months of the date of the granting of registration to a broker or dealer, which of the following authority should conduct an inspection of the broker or dealer to determine whether it is operating in conformity with the provisions of this title and the rules and regulations thereunder:
Correct
The Commission may delay such inspection of any class of brokers or dealers for a period not to exceed six months.
Incorrect
The Commission may delay such inspection of any class of brokers or dealers for a period not to exceed six months.
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Question 8 of 30
8. Question
Which of the following person shall not make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any municipal security in connection with which such person engages in any fraudulent, deceptive, or manipulative act or practice, or makes any fictitious quotation?
Correct
No government securities broker or government securities dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or induce or attempt to induce the purchase or sale of, any government security in connection with which such government securities broker or government securities dealer engages in any fraudulent, deceptive, or manipulative act or practice, or makes any fictitious quotation.
Incorrect
No government securities broker or government securities dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or induce or attempt to induce the purchase or sale of, any government security in connection with which such government securities broker or government securities dealer engages in any fraudulent, deceptive, or manipulative act or practice, or makes any fictitious quotation.
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Question 9 of 30
9. Question
In accordance with the provisions of Section 2 of Article III Qualifications of members and associated persons, which of the following authorities have been given to the Board with respect to the adoption of qualification requirements:
Correct
The Board may from time to time make changes in such rules, regulations, and standards as it deems necessary or appropriate.
Incorrect
The Board may from time to time make changes in such rules, regulations, and standards as it deems necessary or appropriate.
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Question 10 of 30
10. Question
Which of the following statement is not correct regarding the permissible lending arrangements between any person associated with a member and any customer of such person in any registered capacity under section 3240 of Finra Rules:
Correct
The borrowing or lending arrangement is also possible if the customer is a member of such person’s immediate family or the lending arrangement is based on a business relationship outside of the broker-customer relationship.
Incorrect
The borrowing or lending arrangement is also possible if the customer is a member of such person’s immediate family or the lending arrangement is based on a business relationship outside of the broker-customer relationship.
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Question 11 of 30
11. Question
Under Section 1230 of Finra Rules, There are certain associated persons, whose functions are solely and exclusively clerical or ministerial, are not required to be registered with Finra. Which of the undermentioned is not included in the aforesaid list:
Correct
Persons associated with a member whose functions are solely and exclusively clerical or ministerial and are related to transactions in security futures, provided that any such person is registered with a registered futures association, are not required to be registered with Finra.
Incorrect
Persons associated with a member whose functions are solely and exclusively clerical or ministerial and are related to transactions in security futures, provided that any such person is registered with a registered futures association, are not required to be registered with Finra.
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Question 12 of 30
12. Question
Persons associated with a member whose functions are solely and exclusively clerical or ministerial and related to transactions in security futures; such persons are not required to be registered with FINRA only if:
Correct
The following persons associated with a member are not required to be registered with FINRA:
(a) persons associated with a member whose functions are solely and exclusively clerical or ministerial; and
(b) persons associated with a member whose functions are related solely and exclusively to:
(1) effecting transactions on the floor of a national securities exchange and who are appropriately registered with such exchange;
(2) transactions in municipal securities;
(3) transactions in commodities; or
(4) transactions in security futures, provided that any such person is registered with a registered futures association.Incorrect
The following persons associated with a member are not required to be registered with FINRA:
(a) persons associated with a member whose functions are solely and exclusively clerical or ministerial; and
(b) persons associated with a member whose functions are related solely and exclusively to:
(1) effecting transactions on the floor of a national securities exchange and who are appropriately registered with such exchange;
(2) transactions in municipal securities;
(3) transactions in commodities; or
(4) transactions in security futures, provided that any such person is registered with a registered futures association. -
Question 13 of 30
13. Question
Under the provisions of Variable contracts of an insurance company of Finra rules, an arrangement where a non-member company pays compensation directly to associated persons of the member is not prohibited unless:
Correct
No associated person of a member shall accept any compensation from anyone other than the member with which the person is associated.
Incorrect
No associated person of a member shall accept any compensation from anyone other than the member with which the person is associated.
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Question 14 of 30
14. Question
Which of the following statement is correct regarding the required notification and approval with respect to Borrowing from or lending to customers under section 3240 of Finra Rules:
Correct
A member’s written procedures may indicate that registered persons are not required to notify the member or receive member approval either prior to or subsequent to entering into such borrowing or lending arrangements.
Incorrect
A member’s written procedures may indicate that registered persons are not required to notify the member or receive member approval either prior to or subsequent to entering into such borrowing or lending arrangements.
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Question 15 of 30
15. Question
In accordance with the provisions of Finra Rules regarding variable contracts of an insurance company, a member shall maintain records of all compensation received by the member or its associated persons from offerors; What type of information should be included in aforesaid records:
Correct
No member or person associated with a member shall accept any compensation from an offeror which is in the form of securities of any kind.
Incorrect
No member or person associated with a member shall accept any compensation from an offeror which is in the form of securities of any kind.
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Question 16 of 30
16. Question
Rule 15a-6—Exemption of Certain Foreign Brokers or Dealers, The registered broker or dealer, through which the transaction with the U.S. institutional investor or the major U.S. institutional investor is effected, is not responsible for which of the following duty?
Correct
The registered broker or dealer, through which the transaction with the U.S. institutional investor or the major U.S. institutional investor is effected, is responsible for:
(1) Effecting the transactions conducted, other than negotiating their terms;
(2) Issuing all required confirmations and statements to the U.S. institutional investor or the major U.S. institutional investor;
(3) As between the foreign broker or dealer and the registered broker or dealer, extending or arranging for the extension of any credit to the U.S. institutional investor or the major U.S. institutional investor in connection with the transactions;
(4) Maintaining required books and records relating to the transactions as required by the applicable rules;
(5) Complying with applicable rules with respect to the transactions; and
(6) Receiving, delivering, and safeguarding funds and securities in connection with the transactions on behalf of the U.S. institutional investor or the major U.S. institutional investor in compliance with applicable rulesIncorrect
The registered broker or dealer, through which the transaction with the U.S. institutional investor or the major U.S. institutional investor is effected, is responsible for:
(1) Effecting the transactions conducted, other than negotiating their terms;
(2) Issuing all required confirmations and statements to the U.S. institutional investor or the major U.S. institutional investor;
(3) As between the foreign broker or dealer and the registered broker or dealer, extending or arranging for the extension of any credit to the U.S. institutional investor or the major U.S. institutional investor in connection with the transactions;
(4) Maintaining required books and records relating to the transactions as required by the applicable rules;
(5) Complying with applicable rules with respect to the transactions; and
(6) Receiving, delivering, and safeguarding funds and securities in connection with the transactions on behalf of the U.S. institutional investor or the major U.S. institutional investor in compliance with applicable rules -
Question 17 of 30
17. Question
In accordance with Rule 15a-6—Exemption of Certain Foreign Brokers or Dealers, If the Commission finds that the laws or regulations of a foreign country have prohibited the foreign broker or dealer, or one of a class of foreign brokers or dealers, from providing, in response to a request from the Commission, information or documents within its possession, custody, or control, testimony of foreign associated persons, or assistance in taking the evidence of other persons, wherever located, related to activities exempted under the aforesaid rule; in such case which of the undermentioned authority is given to the Commission?
Correct
If the Commission finds that the laws or regulations of a foreign country have prohibited the foreign broker or dealer, or one of a class of foreign brokers or dealers, from providing, in response to a request from the Commission, information or documents within its possession, custody, or control, testimony of foreign associated persons, or assistance in taking the evidence of other persons, wherever located, related to activities exempted under the aforesaid rule; The Commission, by order after notice and opportunity for hearing, may withdraw the exemption provided under this section with respect to the subsequent activities of a foreign broker or dealer or class of foreign brokers or dealers conducted from a foreign country
Incorrect
If the Commission finds that the laws or regulations of a foreign country have prohibited the foreign broker or dealer, or one of a class of foreign brokers or dealers, from providing, in response to a request from the Commission, information or documents within its possession, custody, or control, testimony of foreign associated persons, or assistance in taking the evidence of other persons, wherever located, related to activities exempted under the aforesaid rule; The Commission, by order after notice and opportunity for hearing, may withdraw the exemption provided under this section with respect to the subsequent activities of a foreign broker or dealer or class of foreign brokers or dealers conducted from a foreign country
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Question 18 of 30
18. Question
In accordance with the Rule 15b1-1—Application for Registration of Brokers or Dealers, An application for registration of a broker or dealer shall be filed on Form BD in accordance with the instructions to the form; Which of the following information is required to be mentioned by the broker or dealer that is an OTC derivatives dealer?
Correct
A broker or dealer that is an OTC derivatives dealer shall indicate where appropriate on Form BD that the type of business in which it is engaged is that of acting as an OTC derivatives dealer.
Incorrect
A broker or dealer that is an OTC derivatives dealer shall indicate where appropriate on Form BD that the type of business in which it is engaged is that of acting as an OTC derivatives dealer.
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Question 19 of 30
19. Question
In accordance with the Rules of Securities Exchange Act of 1934 with respect to the application for Registration of Brokers or Dealers, An application for registration of a broker or dealer shall be filed on Form BD in accordance with the instructions to the form; With which of the following authority such application for registration of a broker or dealer, that is filed on or after January 25, 1993, shall be filed?
Correct
Every application for registration of a broker or dealer that is filed on or after January 25, 1993, shall be filed with the Central Registration Depository operated by the Financial Industry Regulatory Authority, Inc.
Incorrect
Every application for registration of a broker or dealer that is filed on or after January 25, 1993, shall be filed with the Central Registration Depository operated by the Financial Industry Regulatory Authority, Inc.
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Question 20 of 30
20. Question
Under Rule 15b1-3 Registration of successor to registered broker or dealer of Securities Exchange Act of 19834, If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor shall be deemed to remain effective as the registration of the successor if the successor, within 30 days after such succession, does which one of the undermentioned action?
Correct
If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor shall be deemed to remain effective as the registration of the successor if the successor, within 30 days after such succession, files an application for registration on Form BD, and the predecessor files a notice of withdrawal from registration on Form BDW.
Incorrect
If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor shall be deemed to remain effective as the registration of the successor if the successor, within 30 days after such succession, files an application for registration on Form BD, and the predecessor files a notice of withdrawal from registration on Form BDW.
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Question 21 of 30
21. Question
Under Rule 15b1-3 Registration of successor to registered broker or dealer of Securities Exchange Act of 19834, If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may amend the registration of the predecessor broker or dealer on Form BD to reflect these changes; such amendment shall be deemed an application:
Correct
If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may amend the registration of the predecessor broker or dealer on Form BD to reflect these changes; such amendment shall be deemed an application for registration filed by the predecessor and adopted by the successor.
Incorrect
If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may amend the registration of the predecessor broker or dealer on Form BD to reflect these changes; such amendment shall be deemed an application for registration filed by the predecessor and adopted by the successor.
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Question 22 of 30
22. Question
Under Rule 15b1-3 Registration of successor to registered broker or dealer of Securities Exchange Act of 19834, If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may:
Correct
If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may, within 30 days after the succession, amend the registration of the predecessor broker or dealer on Form BD to reflect these changes.
Incorrect
If a broker or dealer succeeds to and continues the business of a registered predecessor broker or dealer, and the succession is based solely on a change in the predecessor’s date or state of incorporation, form of organization, or composition of a partnership, the successor may, within 30 days after the succession, amend the registration of the predecessor broker or dealer on Form BD to reflect these changes.
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Question 23 of 30
23. Question
Under Rule 15b1-3 Registration of successor to registered broker or dealer of Securities Exchange Act of 19834, If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor broker or dealer will cease to be effective as the registration of the successor broker or dealer 45 days after one of the undermentioned event:
Correct
If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor broker or dealer will cease to be effective as the registration of the successor broker or dealer 45 days after the application for registration on Form BD is filed by such successor
Incorrect
If a broker or dealer succeeds to and continues the business of an already registered broker or dealer, the registration of the predecessor broker or dealer will cease to be effective as the registration of the successor broker or dealer 45 days after the application for registration on Form BD is filed by such successor
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Question 24 of 30
24. Question
Under Rule 15b3-1 ‘Amendments to application’ of Securities Exchange Act of 19834, If the information contained in any application for registration as a broker or dealer, or in any amendment thereto, is or becomes inaccurate for any reason, Which of the undermentioned course of action should be said by such broker or dealer promptly:
Correct
Every amendment filed with the Central Registration Depository, under Rule 15b3-1 ‘Amendments to application’ of Securities Exchange Act of 19834, shall constitute a “report” filed with the Commission.
Incorrect
Every amendment filed with the Central Registration Depository, under Rule 15b3-1 ‘Amendments to application’ of Securities Exchange Act of 19834, shall constitute a “report” filed with the Commission.
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Question 25 of 30
25. Question
Under Rule 15b6-1 ‘Withdrawal from registration’ of Securities Exchange Act of 1934, If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer; Which of the undermentioned condition should be fulfilled by the notice of withdrawal from registration?
Correct
Notice of withdrawal from registration as a broker or dealer shall be filed on Form BDW in accordance with the instructions contained therein.
Incorrect
Notice of withdrawal from registration as a broker or dealer shall be filed on Form BDW in accordance with the instructions contained therein.
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Question 26 of 30
26. Question
Under Rule 15b6-1 ‘Withdrawal from registration’ of Securities Exchange Act of 1934, If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer; Which one of the undermentioned conditions is mandatory to be fulfilled by such notice of withdrawal from registration as a broker or dealer?
Correct
Every notice of withdrawal from registration as a broker or dealer shall be filed with the Central Registration Depository (operated by the Financial Industry Regulatory Authority, Inc.) in accordance with applicable filing requirements.
Incorrect
Every notice of withdrawal from registration as a broker or dealer shall be filed with the Central Registration Depository (operated by the Financial Industry Regulatory Authority, Inc.) in accordance with applicable filing requirements.
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Question 27 of 30
27. Question
Under Rule 15b6-1 ‘Withdrawal from registration’ of Securities Exchange Act of 1934, If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer and there is any inaccurate information on the form BD filed by such dealer or broker previously; Which of the following course of action is mandatory in abovementioned situation?
Correct
If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer and there is any inaccurate information on the form BD filed by such dealer or broker previously, then such broker or dealer shall amend Form BD prior to filing a notice of withdrawal from registration on Form BDW.
Incorrect
If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer and there is any inaccurate information on the form BD filed by such dealer or broker previously, then such broker or dealer shall amend Form BD prior to filing a notice of withdrawal from registration on Form BDW.
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Question 28 of 30
28. Question
Under Rule 15b6-1 ‘Withdrawal from registration’ of Securities Exchange Act of 1934, If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer; At what time such notice of withdrawal from registration, filed by a broker or dealer, shall become effective for all matters?
Correct
A notice of withdrawal from registration filed by a broker or dealer under Section 15(b) of the Securities Exchange Act of 1934shall become effective, for all matters except for some exceptional situations, on the 60th day after the filing thereof with the Commission.
Incorrect
A notice of withdrawal from registration filed by a broker or dealer under Section 15(b) of the Securities Exchange Act of 1934shall become effective, for all matters except for some exceptional situations, on the 60th day after the filing thereof with the Commission.
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Question 29 of 30
29. Question
If a notice of withdrawal from registration is filed with the Commission at any time subsequent to the date of the issuance of a Commission order instituting proceedings to censure, place limitations on the activities, functions or operations of, or suspend or revoke the registration of, such broker or dealer, or if prior to the effective date of the notice of withdrawal from registration, What will be the effect of the aforesaid situation on the effectivity of such notice of withdrawal from registration?
Correct
If a notice of withdrawal from registration is filed with the Commission at any time subsequent to the date of the issuance of a Commission order instituting proceedings to censure, place limitations on the activities, functions or operations of, or suspend or revoke the registration of, such broker or dealer, or if prior to the effective date of the notice of withdrawal from registration, The notice of withdrawal shall not become effective on the 60th day after the filing thereof except at such time and upon such terms and conditions as the Commission deems necessary or appropriate in the public interest or for the protection of investors.
Incorrect
If a notice of withdrawal from registration is filed with the Commission at any time subsequent to the date of the issuance of a Commission order instituting proceedings to censure, place limitations on the activities, functions or operations of, or suspend or revoke the registration of, such broker or dealer, or if prior to the effective date of the notice of withdrawal from registration, The notice of withdrawal shall not become effective on the 60th day after the filing thereof except at such time and upon such terms and conditions as the Commission deems necessary or appropriate in the public interest or for the protection of investors.
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Question 30 of 30
30. Question
Under Rule 15b6-1 ‘Withdrawal from registration’ of Securities Exchange Act of 1934, If any dealer or broker already registered, under the Securities Exchange Act of 1934, files a notice of withdrawal from registration as a broker or dealer, Such notice shall be filed on Form BDW in accordance with the instructions contained therein; Which of the undermentioned authority may exempt any broker or dealer from the filing requirements provided in Form BDW under conditions that differ from the filing instructions contained in Form BDW.
Correct
The Commission, by order, may exempt any broker or dealer from the filing requirements provided in Form BDW under conditions that differ from the filing instructions contained in Form BDW.
Incorrect
The Commission, by order, may exempt any broker or dealer from the filing requirements provided in Form BDW under conditions that differ from the filing instructions contained in Form BDW.