US authorities are investigating Deutsche Bank AG’s asset management group, the DWS group, after the company’s former head of sustainability said he was exaggerating how much he used sustainable investment criteria to manage his assets. , according to people familiar with the subject.
The investigations, conducted by the Securities and Exchange Commission and federal prosecutors, are in the early stages, according to people. The DWS review by authorities comes after the Wall Street Journal reported that the $ 1 trillion asset manager exaggerated its sustainable investment efforts. The newspaper, which cites documents and the firm’s former head of sustainability, said the company struggled with its environmental, social and governance investment strategy and sometimes drew investors a more rosy picture than reality. .
A spokesman for the U.S. attorney’s office in Brooklyn, which handles the investigation, declined to comment. An SEC spokesman declined to comment.
A DWS spokesman said the firm does not comment on issues related to litigation or regulatory issues. A Deutsche Bank spokesman declined to comment.
The probe is a setback for Deutsche Bank, which owns a majority stake in DWS, a separately listed company in Germany. The bank has reached several agreements with the authorities and has been trying to convince investors that its legal problems are behind it.