The chief executive of top German asset manager DWS will step down next week, he said on Wednesday, a day after prosecutors said the company misled investors about “green” investments.
The deals and the departure of DWS Chief Executive Asoka Woehrmann mark another setback for Deutsche Bank, the majority shareholder of DWS, which has been trying to overcome episodes of regulatory violations, including money laundering and misselling of securities, that have generated billions. in fines to the group.
German and US officials are investigating reports and allegations that DWS exaggerated the green credentials of the investments it sold — a practice known as “greenwashing”. DWS has repeatedly denied that it misled investors.
The change in management at DWS had been in the works for some time, but ended up being consummated in meetings on Tuesday night (31), after the authorities’ operations, said a source with direct knowledge of the matter.
On Tuesday, German prosecutors said that “sufficient factual evidence has emerged” to show that environmental, social and governance (ESG) factors were taken into account in a minority of investments, “but not taken into account in a large number of investments.” investments”, contrary to statements in the sales prospectuses of DWS funds.
The US Securities and Exchange Commission (SEC) and German financial agency BaFin last year launched separate investigations into allegations made by the whistleblower, a former sustainability chief at DWS. He said the company exaggerated the criteria for sustainable investment in its projects.
DWS shares are down 26% since the SEC and BaFin investigations were released in August of last year. Stocks were down about 7% on Wednesday.
Under pressure
Woehrmann has been under pressure on several fronts since the greenwashing allegations were made public.
Deutsche Bank conducted an internal investigation into Woehrmann’s possible use of private email for business purposes, and the European Central Bank also looked into corporate governance issues surrounding him.
When asked about the allegations on a DWS earnings call with analysts, Woehrmann emphatically rejected all the allegations.
Deutsche Bank Chief Executive Christian Sewing publicly supported Woehrmann in January.
Stefan Hoops, who has overseen Deutsche Bank’s corporate banking division since 2019, will replace Woehrmann effective June 10, the bank said. The executive’s resignation takes effect on June 9.
Source: CNN Brasil
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