Mariner linked to American Century’s rigged hiring scheme

investmentnews.com:

The American Century Cos. in 2021 admitted in a federal settlement with the Department of Justice that it had conspired with a wealth management firm also located in the Kansas City, Missouri, area, to dampen the local job market by suppressing and eliminating competition for workers.

In other words, in a anti-competitive, no-poach scheme, American Century wouldn’t hire staff members from the other, unnamed firm, and that firm wouldn’t pursue theirs. Such a plan harms workers’ ability to move freely to new jobs in the marketplace and potentially suppresses wages, benefits, and future earnings.

Now, according to a recent lawsuit seeking class-action status, it turns out that the other firm was Mariner Wealth Advisors, a giant registered investment advisor based in Overland Park, Kansas, and a leading buyer and aggregator of RIAs over the past decade.

According to the complaint, Mariner recently signed a non-prosecution agreement with the Justice Department and admitted “to its illegal, anticompetitive scheme,” avoiding criminal prosecution as part of the deal.

In an industry that is as grounded in capitalism as the financial advice business, two significant institutions like American Century, with $200 billion in assets, and Mariner Wealth, with $104 billion, admitting to anti-competitive behavior is no small matter.

The most significant cost facing RIAs and wealth management firms is labor, industry sources noted, so the formerly secret agreement between American Century and Mariner Wealth, which dates back to 2014, puts the firm first.

“That’s why the DOJ has antitrust rules and regulations,” said Max Schatzow, an industry attorney, who had no direct knowledge of the matter. “It’s a violation of federal laws, and