In a move reflecting an increased focus on institutional clients and financial planning support closely aligned with the worksite, Voya Financial announced Monday it is selling the independent financial planning channel of Voya Financial Advisors (VFA), Voya’s registered investment advisor and broker-dealer, to Cetera Financial Group, Inc., one of the nation’s largest networks of independently managed broker-dealers.
Through this acquisition, approximately 900 VFA independent financial professionals providing financial planning to 385,000 retail customers with nearly $40 billion in assets will become part of Cetera.
In a statement announcing the deal, Voya said approximately 600 Voya field and phone-based financial professionals who are core to the company’s workplace strategy in supporting its retirement business and clients—providing guidance, advice and financial wellness solutions to plan sponsor clients and plan participants—remain with Voya.
Specifically, Voya’s field and phone-based financial professionals help Voya’s customers meet their evolving needs with both in-person financial planning as well as Voya’s digital financial wellness tools to offer more personalized planning for employers and their employees.
“At Voya, we are committed to helping millions of Americans improve their financial well-being by supporting their health and wealth programs through the workplace,” said Rodney O. Martin, Jr., chairman and CEO, Voya Financial, Inc. “This transaction is an opportunity to position our financial advisory teams for continued success, with our field and phone-based financial professionals being an important and strategic part of Voya and enabling us to meet the growing financial wellness needs of employers, employees and their households. These 600 field and phone-based financial professionals provide guidance to our workplace clients through a multi-channel, personalized, flexible service model in order to serve customers when, where and how they need.”
Voya expects that the transaction will provide the company with over $300 million in deployable proceeds at closing. The transaction is expected to close in the second or third quarter of 2021, subject to customary closing conditions, including regulatory approvals.
“The proceeds generated by the transaction will add to our strong excess capital position and reinforces the significant progress we have made in focusing our operations on workplace solutions and institutional clients,” added Martin. “In addition to returning excess capital to shareholders, we also will continue to reinvest in our Retirement, Investment Management and Employee Benefits businesses to support our growth plans. We believe that we are well-positioned to continue our positive momentum and achieve strong outcomes for all of our stakeholders.”
Cetera adding a distinct business
The approximately 900 VFA independent financial professionals joining El Segundo, Calif.-based Cetera in the deal will gain “comprehensive, leading-edge growth capabilities, with increased flexibility and choice as independent business owners,” according to a statement from Cetera.
“We have always respected VFA’s commitment to their business owners, independent operating model, and strong community of financial professionals. We share an unwavering purpose in providing more American investors with sound independent financial guidance,” Cetera CEO Adam Antoniades said. “By helping financial professionals grow and by bringing new financial professionals to the network, Cetera continues to empower more financial professionals to deliver an ‘Advice-Centric Experience’ to more clients. We meet financial professionals where they are to help them grow the businesses of their dreams and leave the legacy they envision.”
Cetera’s focus on the delivery of financial advice and its ability to accelerate growth for its financial professionals aligns with the goals of VFA’s independent network. With today’s announcement, the team and independent financial professional network from VFA will form a distinct business within Cetera, as part of Cetera Advisor Networks. It will continue to be led by Tom Halloran, President, as well as key leadership and dedicated service teams who will also join Cetera and continue to serve their financial professional community as they do today.
“Our team at VFA and our independent financial professionals are excited to be joining Cetera as we build on the legacy and progress we’ve made over the last seven years. We are energized by Cetera’s industry-respected mission to help independent financial professionals provide financial wellness to clients at each life stage.” Halloran said.
Tom Taylor, Chief Sales and Growth Officer at Cetera, added, “We are eager to begin working with VFA financial professionals to accelerate their goals for growth and client service. Our differentiated model for supporting multiple affiliation choices through distinct communities enables us to quickly augment capabilities for new members of our network. As part of Cetera’s community of large enterprises, VFA financial professionals will be able to retain their long-standing relationships. They also keep their independent culture, leadership, and way of doing business while benefiting from Cetera’s breadth of resources for growth and productivity.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
