Does maintaining a place of business in the state trigger a notice filing (regardless of number of clients)?
Yes
N.D. CENT. CODE § 10-04-10(4)(b)(1)&(2)(2017)
Place of business means:
- An office at which the broker-dealer, investment adviser, or federal covered investment adviser regularly provides brokerage or investment advice or solicits, meets with, or otherwise communicates with customers or clients; or
- Any other location that is held out to the general public as a location at which the broker-dealer, investment adviser, or federal covered investment adviser provides brokerage or investment advice or solicits, meets with, or otherwise communicates with customers or clients.
N.D. CENT. CODE § 10-04-02(15)(2017)
What is the maximum number of clients adviser can have in the state without triggering a notice filing?
5
N.D. CENT. CODE § 10-04-10(4)(b)(2)(2017)
What sorts of clients are not counted for purposes of determining whether to notice file?
- Federal Covered Advisers,
- registered investment advisers under North Dakota law,
- registered broker-dealers under North Dakota law,
- institutional investors, and
- bona fide preexisting clients whose principal places of residence are not in North Dakota.
N.D. CENT. CODE § 10-04-10(4)(b)(1)(a)-(c)(2017). "Institutional investors" are depository or int'l banking institutions; insurance companies or a separate account of an insurance company; investment companies; registered broker-dealers; employee pension, profit-sharing, or benefit plans with assets in excess of $10,000,000 (and a few other small requirements); a plan established and maintained by a state or a state subdivision with assets in excess of $10;000,000 a trust with assets in excess of $10,000,000 if the beneficiaries are listed in this section; certain other organizations, including nonprofits, LLCs, or partnerships, with assets in excess of $10;000,000 small business investment companies with assets in excess of $10;000,000 private business development companies with assets in excess of $10;000,000 federal covered advisors acting for self; a qualified institutional buyer, a major US institutional investor; any other person with total assets in excess of $10,000,000.
N.D. CENT. CODE § 10-04-01(9)(2017)
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