Cetera Financial announced plans to acquire the assets of Foresters Financial’s brokerage and advisory business, adding 500 advisors to its self-clearing platform. The new business, Cetera Investors, will operate as a distinct division of Cetera Investment Services, which is the firm’s self-clearing broker/dealer.
Terms of the deal were not disclosed.
As part of the asset purchase agreement, Cetera may choose to renew the leases of the 40-plus branch offices of Foresters throughout the U.S. and make employment offers to the firm’s employees. Sean Casey, who’s currently director of business development for Cetera Financial Institutions, will lead the new group, reporting to CFI President LeAnn Rummel. The new business will have its own dedicated service and support team.
Foresters also announced Tuesday it would shed its asset management business, including First Investors mutual funds, to Macquarie Investment Management. The firm plans to focus on its core life insurance business.
Earlier this year, Cetera CEO Robert “RJ” Moore told WealthManagement.com the firm was open to making acquisitions. Moore announced his plans to step down from his role in late February. Ben Brigeman, nonexecutive chairman of Cetera’s board of directors, has taken over as interim CEO.