Cetera to Acquire Assets of Foresters Financial’s U.S. Brokerage and Investment Advisory Business
As it continues to expand the reach of its Advice-Centric Experience®, Cetera® has entered into a definitive agreement to purchase select assets of Foresters Financial’s U.S. broker dealer and advisory business. The transaction, which is subject to regulatory approval, is expected to close late in the second quarter of 2019. Financial terms of the transaction will not be publicly disclosed. As part of the asset purchase agreement, Cetera will be permitted to invite Foresters Financial’s approximately 500 independent financial advisors to join Cetera’s self-clearing platform.
As part of the transaction, Cetera will also have the option to assume the leases of the 40-plus branch office locations throughout the United States, as well as make offers to a substantial portion of the employees of the brokerage and advisory business, who will be expected to continue to play key roles in the growth of the business and support of its advisors. The business will operate as a distinct division of Cetera, with a separate and distinct management team led by Sean Casey, reporting to LeAnn Rummel, President of Cetera Investment Services*. Cetera is establishing a dedicated service and support team to conduct a seamless transition as a benefit to the newly affiliated Cetera advisors.
LeAnn Rummel said, “When Foresters Financial decided to continue to focus and invest in its core life insurance business, it sought a firm that it felt would best offer its national network of diverse and client-centric financial advisors a path for continued growth. Cetera was the right firm, for a number of reasons, including the breadth of our product solutions and proven track record of helping advisors grow their businesses. The advisors who join Cetera will also benefit from our business consulting services and leading technology like AdviceWorks™ and My Advice Architect®, which helps advisors manage and grow their advisory businesses. We also look forward to offering these advisors access to our expertise and automation of our fixed and variable annuity and life insurance shelf.”
“We extend a warm welcome to all the new employees and advisors joining the Cetera family,” said Adam Antoniades, President of Cetera Financial Group. “The Foresters advisors already have a long-standing and growing client base with high retention rates. Cetera offers them a proven path for growth, having a successful track record in operating “lift-outs” of retail businesses through our unique model of independence and specialty focus. 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.”
Cetera was advised on these transactions by Deutsche Bank Securities Inc.
About Foresters Financial
Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Foresters Financial includes The Independent Order of Foresters, the oldest non-denominational fraternal benefit society. Foresters is a purpose-driven organization that exists to enrich family and community well-being and offers insurance products to over three million members and clients in Canada, the US and the UK. For 18 straight years, The Independent Order of Foresters has received an “A” (Excellent) rating from A.M. Best.1 For more information please visit foresters.com
1. The A.M. Best rating assigned on August 2, 2018 reflects the overall strength and claims-paying ability of The Independent Order of Foresters (IOF) but does not apply to the performance of any non-IOF issued products. An “A” (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. See ambest.com for our latest rating.
About Cetera Financial Group®
Cetera Financial Group ("Cetera") is a leading network of independent firms empowering the delivery of professional financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading service provider to the investment programs of banks and credit unions.
Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations. Advisor support resources offered through Cetera include award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology. For more information, visit cetera.com.
*Cetera Investment Services LLC is also known by its marketing name, Cetera Financial Institutions
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