Cetera Financial could potentially add 500 independent financial advisors if its most recent deal with Foresters Financial goes through. A press release announcing the deal Tuesday said Cetera Financial will buy the assets of the U.S. advisory and broker-dealer business of Foresters Financial.
As a part of the deal, Cetera could invite the nearly 500 independent financial advisors from Foresters to join its ranks, according to the press release.
“The Foresters advisors already have a long-standing and growing client base with high retention rates,” Cetera Financial Group President Adam Antoniades said in the release.
The firm will also have the option of assuming the leases of the nearly 40 branch office locations. The transaction is expected to be completed late in the second quarter of this year, subject to regulatory approvals.
Cetera already has a network of over 8,000 financial advisors and added more than 800 advisors to its roster in 2018.
The Foresters business will operate as a separate division with a distinct management team that will report into the president of Cetera Investment Services, also known as Cetera Financial Institutions.
Cetera Financial Institutions, one of the six firms operating under the Cetera umbrella, is the branch that works with advisors who are a part of a financial institution such as a bank or a credit union.
While the financial terms of the deal were not disclosed, it is part of a larger strategic move by Foresters Financial to focus on its core insurance business.
While Cetera touts its technological prowess as a benefit for advisors moving over, Foresters may also bring something to the table.
“As these advisors seek to deliver financial advice to the next generation of clients, they can benefit from the technology and services Cetera offers to help advisors accelerate growth. In addition, we look forward to supporting and expanding the programs these advisors have established to attract new entrants to the profession by working closely with colleges and universities,” Antoniades said in the release.