SEC Flags Deutsche's DWS Over False ESG Investment Claims

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SEC Flags Deutsche's DWS Over False ESG Investment Claims
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The SEC charged Deutsche Bank's subsidiary, DWS Investment Management Americas Inc., for misstatements related to its ESG investment processes and failure to develop an AML program, resulting in a $25 million fine.

The SEC charged DWS Investment Management Americas Inc. for making misleading claims about its ESG investment procedures and for failing to set up an effective AML program.

The subsidiary, investment adviser DWS Investment Management Americas Inc., was charged once for a"failure to develop a mutual fund Anti-Money Laundering program",, and again for"misstatements regarding its Environmental, Social, and Governance investment process". The subsidiary"marketed itself as a leader in ESG that adhered to specific policies for integrating ESG considerations into its investments; however, from August 2018 until late 2021, DIMA failed to adequately implement certain provisions of its global ESG integration policy as it had led clients and investors to believe it would," the release continues.

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