Cetera announced the addition of a new team of financial specialists, with plans to recruit more advisors, indicating a continued recruitment push from the large broker/dealer. This comes after the firm confirmed on Friday a further “small workforce reduction” to non-advisor teams.
On Tuesday, San Diego-based Cetera announced that cousins Matthew and Christopher Callero would be joining the broker/dealer’s tax and accounting channel with about $265 million in assets under administration under the name Callero Capital Management.
Their team of eight is based in the Chicago suburb of Mt. Prospect, Ill., and had formerly been with Woodbury Financial Services, one of the firm’s brought into Osaic amid a larger integration. The Calleros cited the “challenges” associated with that integration in their search for a new broker/dealer.
They cited Cetera as their choice for its back-office support and growth-oriented approach, including assistance with their goal of recruiting advisors.
“We’re positioned to welcome additional producing advisors who share our client-first philosophy,” Matthew Callero said in a statement. “With many advisors approaching retirement themselves, local advisors are seeking succession solutions and are reaching out to ensure their clients’ futures. We will be active in pursuing local acquisition opportunities over the next 3 to 5 years.”
The firm boasts a multi-generational team and specializes in retirement planning for individuals, families and business owners.
Workforce Reduction
On Friday, a Cetera spokesperson responded to a report by Investment News, stating that the company had made a “small workforce reduction across Cetera to align resources and streamline operations.”
Cetera did not elaborate on the types of roles being cut, but said there was “minimal impact on field-facing employees and no impact on the Regional Growth Teams that support our financial advisors and institutions.”
The moves add to the layoffs the firm made earlier this year, which Cetera also said were not advisor-facing.
Cetera has made several acquisitions in recent years that may have created duplicative roles, including the $1.2 billion 2023 acquisition of tax-focused wealth management firm Avantax. It also acquired the retail wealth business of Securian Financial Group that year, bringing on more than 1,000 financial professionals and 30 independent firms.
“As we continue growing, it’s essential that we adjust our organization to help ensure Cetera operates efficiently and is well-positioned for long-term success,” the spokesperson said.
Cetera currently has about 12,000 advisors across its various channels. They collectively oversee more than $625 billion in assets under administration and $284 billion in assets under management.
In a separate incident last week, Cetera fired an employee accused of making racist comments in an Instagram video that had gone viral. Although Cetera would not identify the man, social media accounts identified him as Thomas C. Powers, a Denver-based branch manager and financial advisor.
