MN HF1243

Adds definitions for private funds, private fund advisers, qualifying private funds, venture capital funds, 3(c)(1) funds, and funding portals to Minnesota securities law.

Creates exemption from investment adviser registration for private fund advisers meeting specific conditions, including filing exempt reporting adviser reports with the state and compliance with SEC Rule 203(m)-1.

Establishes additional requirements for private fund advisers advising 3(c)(1) funds, including client qualification standards, written disclosures to beneficial owners, and annual audited financial statement delivery.

Requires funding portals with principal place of business in Minnesota to register with the state by filing registration information with the administrator.

Modifies securities registration denial/suspension procedures by adding requirement that commissioners cannot deem offerings unfair solely based on excessive price if determined by arm's-length negotiation between unaffiliated parties; increases custody bond requirements from maximum $25,000 to range of $25,000-$100,000.