BISMARCK – In a move aimed at simplifying investment access and aligning with national norms, the North Dakota Insurance Commissioner has rescinded a 2018 order that imposed stricter financial requirements on residents investing in certain real estate investment trusts (REITs) and other direct participation programs.

According to information from the North Dakota Insurance & Securities Department, the now-rescinded rule required North Dakota investors to have a net worth at least 10 times the amount they planned to invest — an unusually high bar not found in most other states.

“We want to make sure our rules are strong, but also consistent with what’s happening across the country,” Commissioner Jon Godfread said. “This change brings us in line with national standards while still protecting investors and maintaining transparency in the marketplace.”

The new order, SEC-2025-01, restores consistency with guidelines set by the North American Securities Administrators Association (NASAA), that are already embedded in North Dakota’s administrative code. These guidelines include suitability standards that help ensure investors are financially prepared for these types of offerings — without adding unnecessary restrictions.

Why it matters

According to N.D. Insurance & Securities Department information, this change could open the door for more North Dakotans to participate in alternative investment opportunities such as non-traded REITs, which are often used for income generation and portfolio diversification. It also signals a broader effort by the state to modernize its approach to financial regulation and stay aligned with national best practices.

The order is effective immediately and will remain in place unless amended or rescinded.