I am not a lawyer or Bill Singer....

I believe this has to do with the fair fund, when its distributed, and how it is recognized from a tax perspective. Again I could be wrong, but I believe Jones petitioned the SEC to get clarification when distributions are given will they be taxable or not. Originally, the way the settlement is written they would have been. Now that the exemption has been approved I believe they are not considered taxable.

But I am always willing to have an attorney clairify....so please Bill, what's your take.

In plain English?

The SEC gives a preferential "get out of jail free" card to the firms it wants to...which happen to be the one's with the deepest pockets.

plain english