Advisor Group has filed a lawsuit against Venerable Insurance and Annuity Company and an affiliate, seeking at least $900,000 plus interest and legal fees for allegedly breaching a marketing agreement. The Phoenix-based wealth manager claims Venerable failed to make three years of payments meant to provide access for its products on Advisor Group’s platforms. This case highlights the ongoing conflicts of interest in the wealth management industry, particularly related to revenue-sharing and third-party payments between broker-dealers, product sponsors, and advisors.
The lawsuit comes amid heightened disclosure requirements under Regulation Best Interest and increased SEC scrutiny, which have already resulted in more than $139 million in restitution over the past two years. Industry experts note that broker-dealers are shifting from reliance on such payments to diversify revenue while maintaining advisor relationships. The litigation also underscores private equity involvement, as Reverence Capital Partners and others hold stakes in both Advisor Group and Venerable…