Prosecutors in Germany raided the headquarters of Deutsche Bank and its subsidiary DWS over allegations of misleading investors regarding green investments.
According to Reuters, DWS and Deutsche Bank said the asset manager had cooperated with regulators and authorities in the past and would continue to do so.
The prosecutors stated that they were following up on news reports and the allegations of a whistle-blower that DWS sold investments as ‘greener’ or ‘more sustainable’ than they were.
The prosecutors detailed that ‘sufficient factual evidence has emerged’ that ESG factors were taken into account in a minority of investments ‘but were not taken into account at all in a large number of investments’, contrary to statements made by DWS in fund sales prospectuses.
DWS said that it plans to work with any authorised bodies to clarify any and all queries they may have, stating, “We understand a variety of actions are required to ensure a thorough and complete investigative process.”
Prosecutors claimed there were around 50 people involved in the DWS raid, including officials from BaFin and the federal police.
Deutsche Bank recently partnered with FinTech FinLync to help provide real-time treasury access to corporates.
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