North Dakota is set to streamline its financial regulatory framework following the signing of legislation that merges the Department of Securities into the Department of Insurance, according to a report from AM Best.
Gov. Kelly Armstrong approved the bill last April 17.
The consolidation aims to bring both securities and insurance regulation under the authority of the Insurance Department, which will be led by Insurance Commissioner Jon Godfread (pictured above). Supporters of the merger argue that it will enhance coordination in financial crime investigations, simplify the licensing process for professionals, and bolster consumer protections in the insurance and investment sectors. By merging the two departments, North Dakota plans to create a more efficient and unified regulatory structure to respond to the evolving needs of the financial services industry.
“This merger ensures North Dakotans receive the strong, streamlined oversight they deserve when it comes to financial products and services,” Godfread said. “By bringing these two regulatory arms under one roof, we’re building a smarter, more efficient government; one that’s ready to meet the challenges of the evolving financial landscape.”
The consolidation will also integrate the Securities Department, which employs ten full-time staff members, into the Insurance Department. North Dakota joins at least 16 other states that have combined oversight of insurance and securities under a single agency. This move follows similar efforts in other states, including South Dakota, which merged its regulatory departments in 2017 with positive outcomes, according to proponents of the North Dakota bill.
While supporters view the merger as a way to improve the state’s ability to combat financial fraud and streamline regulatory processes, critics question whether the previous structure had been causing problems. Some lawmakers expressed uncertainty about the specific issues the merger would address and noted that the consolidation is not expected to generate direct cost savings for the state.
The Department of Insurance is preparing for the transition, which will be implemented over the next several months. The law is set to officially take effect on July 1, 2025.
