North Dakota has completed the merger of its Department of Securities with the Department of Insurance, forming a single regulatory body under the leadership of Insurance Commissioner Jon Godfread.
Godfread will also serve as the state’s securities commissioner following the consolidation.
The merger, which was approved by legislation earlier this year, brings North Dakota in line with 16 other states that have unified oversight of insurance and securities markets.
"Insurance and investment decisions are among the most important financial choices people make," Godfread said. "With this merger, we're not only aligning regulatory expertise, we're creating a smarter, more effective agency that's ready to meet the challenges of a rapidly evolving market."
The department stated that while the insurance and securities divisions will operate under the same agency, they will maintain separate websites. This approach is designed to preserve user access to regulatory information, complaint processing, and service functions related to each sector.
Godfread said the merger is expected to bolster the state’s ability to address financial fraud and risk, while also modernizing the way it supports residents and businesses. He described the agencies’ former structures as having overlapping missions focused on consumer protection, market integrity, and public education.
As part of the agency's reorganization, several leadership appointments were announced. Deputy Commissioner John Arnold will oversee regulatory operations and provide direction across both divisions.
Matt Fischer, formerly director of licensing and chief examiner, will take on the role of chief director of insurance regulation. Cody Schmidt, a longtime securities examiner and investigator, will serve as chief director of securities regulation.
The merger was made possible through the passage of Senate Bill 2214, which was signed into law by Governor Kelly Armstrong on April 17. The bill transferred all powers, duties, and personnel of the former Securities Department to the Department of Insurance, effectively consolidating oversight functions under a single regulatory authority led by the insurance commissioner.
As part of the transition, 10 full-time employees from the Securities Department were incorporated into the Insurance Department’s operations.
Legislative records show that the bill passed the North Dakota House with broad support, receiving an 88–1 vote.
While many lawmakers emphasized the potential for improved efficiency and fraud prevention, some expressed concerns about the lack of direct financial savings. These dissenting views focused on the absence of a clear fiscal justification and questioned whether the structural change would resolve any outstanding regulatory issues.
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