Cetera has agreed to purchase select assets of Foresters Financial's U.S. broker-dealer and advisory business. Terms of the transaction, which is expected to close in June, were not disclosed.
As part of the asset purchase agreement, Cetera said it will be permitted to invite Foresters Financial's approximately 500 independent financial advisers to affiliate with Cetera. It also will have the option to assume the leases of 40-plus branch office locations throughout the United States, as well as make offers to current employees of the business, who will be expected to continue to play key roles in its growth.
In a release, Cetera said the business will operate as a distinct division. It will be led by Sean Casey, who will report to LeAnn Rummel, president of Cetera Investment Services.
Foresters Financial's decision to focus and invest in its core life insurance business drove the move to sell its brokerage and advisory business, Cetera said.