Securities settlement notice procedure enables early applications before proceedings while preserving regulatory discretion to modify allegations and initiate action.

Schedule II prescribes settlement and violation-based fast-track settlement notices for prima facie securities-law violations. Notices identify defaults, violated provisions, penalty provisions, brief findings, and possible proceedings. Standard settlement permits an application within sixty days but provides no guarantee or entitlement to settlement. Fast-track settlement requires an application, remittance of the stipulated settlement amount, and compliance with remedial and regulatory terms. Failure, withdrawal, or unsatisfactory compliance may permit initiation of the specified proceeding, with a later-stage settlement application remaining available.

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