Rules & Laws

Administrative Rules

Title 73 of the North Dakota Administrative Code contains the rules adopted by the Securities Commissioner to assist in the interpretation and implementation of the Securities Act, Franchise Investment Law, and Pre-need Funeral Services Act.

N.D.C.C. 10-04 - Securities Act

The North Dakota Securities Department administers and enforces the North Dakota Securities Act, N.D.C.C. Chapter 10-04, by registering securities; reviewing exemptions; issuing no-action letters and interpretive opinions; and licensing broker-dealers and their agents, and investment advisers and their representatives.  The Securities Department investigates complaints alleging violations of the Securities Act and rules and if violations are found, the Securities Commissioner may bring an administrative or civil action or make a referral for criminal prosecution.

N.D.C.C. 51-23 - Commodities Act

The North Dakota Securities Department administers and enforces the North Dakota Commodities Act of 1989, N.D.C.C. Chapter 51-23, which regulates the offer and sale of certain commodity transactions in the state that are not exempt. The Securities Department may investigate complaints of fraudulent conduct or other violations of the Commodities Act and if violations are found, the Securities Commissioner may bring an administrative or civil action or make a referral for criminal prosecution.

N.D.C.C. 51-19 - Franchise

The North Dakota Securities Department administers and enforces the North Dakota Franchise Investment Law, N.D.C.C. Chapter 51-19, which regulates the offer and sale of franchises in the state.  Before a franchisor can offer or sell any franchise in North Dakota or to any North Dakota residents, it must first register the franchise offering with the Securities Department and provide any prospective franchisee with certain disclosures before a franchise agreement may be executed.  Violations of the Franchise Investment Law could result in the denial, suspension or revocation of the franchise registration or an administrative action or referral for criminal prosecution.

N.D.C.C. 43-10.1 - Pre-Need Funeral Service Contracts

The North Dakota Securities Department administers and enforces the North Dakota Pre-need Funeral Services Act, N.D.C.C. Chapter 43-10.1, which regulates pre-paid contracts to provide funeral services or cemetery merchandise upon the death of the person named in the contract.  The Act requires funeral establishments or cemetery associations to deposit payments on pre-need funeral contracts in an insured bank account and to file annual reports with the Securities Commissioner.  Violations of the Act could result in administrative action, civil action or referral for criminal prosecution.