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Globe/wire say SEC takes aim at Deutsche Bank unit

2021-08-27 08:33 ET - In the News

The Globe and Mail reports in its Friday edition that the U.S. Securities and Exchange Commission is investigating Deutsche Bank's asset manager DWS over how it used sustainable investing criteria to manage its assets. A Reuters dispatch to The Globe says that the news sent DWS shares down almost 13 per cent in morning trade. If it progresses, the case will be watched closely by the asset management industry. Fund managers have rapidly amassed billions of dollars of assets that are meant to have an environmental or social profile, but face growing scrutiny over how firms define and apply environmental, social and governance (ESG) standards. The SEC investigation follows a report earlier this month citing the former head of sustainability at DWS saying the investment firm overstated how it used sustainable investing criteria to manage investments. The former manager left DWS earlier this year after less than a year in the job. Federal prosecutors in Brooklyn, N.Y., were also looking into the matter. Deutsche Bank, which has been expanding its sustainable financing business, has also been trying to restore its image in Washington amid several investigations into its dealings with Donald Trump, a long-standing client.

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