The North Dakota House has overwhelmingly approved a measure to consolidate the state Securities Department into the Insurance Department.
Rep. Jonathan Warrey (R-Casselton) said this is being done to improve protections for North Dakotas, improve government efficiency and helps insure the long-term financial stability of financial markets.
"Why is this a prudent move? Because insurance and securities products are increasingly interconnected,' Warrey said. "Many financial professionals hold dual licenses, to sell both securities an insurance products, like annuities, private placements and investment-linked life insurance policies. These professionals already operate under both regulatory systems, making a single regulatory body a logical choice."
And Warrey said the Insurance Department has the infrastructure and the depth to do the job.
The goal of this merger is to do the following — enhance consumer protection," Warrey said. "A single regulator means faster fraud detection, stronger enforcement, and a unified approach to financial crime."
SB 2214 passed the House 88 to 1. It had earlier passed the Senate on a 29 to 18 vote.
When the Senate debated the bill, Sen. Jerry Klein (R-Fessenden) spoke against it.
"An agency that generates about $25 million a biennium, and spends only $3 million to operate, and has only ten employees — I would suggest that's efficient," Klein said. "I'm still trying to figure out what's broken here."
The bill now goes back to the Senate, because of House amendments.
