The president of Germany’s leading possession management company DWS Group has actually resigned hours after the business’s workplaces in Frankfurt were robbed by cops over claims of greenwashing.
DWS stated in a declaration on Wednesday early morning that Asoka Wöhrmann, president because late 2018, would step down since June 10, the day after the group’s yearly investors’ conference.
He will be changed by Stefan Hoops, formerly head of the business bank at Deutsche Bank, DWS’s bulk owner, which holds an 80 percent stake. Hoops will be changed in turn by British-born David Lynne, who presently heads Deutsche’s corporate service in the Asia-Pacific area.
The executive reshuffle came soon after about 50 German cops robbed the workplaces of DWS and Deutsche Bank in downtown Frankfurt on Tuesday, as part of an examination into possible prospectus scams at the possession supervisor. The search included public district attorneys from Frankfurt, federal cops and authorities from the German monetary regulator, BaFin.
BaFin introduced an examination into DWS in 2015, following a comparable probe by the United States Securities and Exchange Commission, which was triggered by claims from previous DWS executive Desiree Fixler.
Fixler stated the business had actually made deceptive declarations in its 2020 yearly report over claims that majority the group’s $900bn properties were invested utilizing ecological, social and governance requirements.
DWS has actually rejected any misdeed, however has actually altered its ESG requirements because Fixler’s discoveries. In its 2021 yearly report, released in March 2022, DWS reported just €115bn in “ESG assets” for 2021 — 75 percent less than a year previously when it mentioned that €459bn in properties were “ESG integrated”.
The group’s shares fell by more than 6 percent on Wednesday early morning in Frankfurt, while Deutsche Bank’s shares stopped by half a portion point.
Wöhrmann’s replacement in the wake of the greenwashing raid comes a couple of months after the Financial Times exposed that Deutsche Bank was examining a €160,000 payment made by a customer to the senior lender, when he was head of the lending institution’s personal customer service. The executive stated the transfer became part of an unsuccessful effort to purchase a Porsche.
Wöhrmann has actually likewise dealt with criticism over his usage of an individual e-mail address for service functions throughout his time at Deutsche.
In a declaration launched by DWS, Wöhrmann stated he was leaving “to clear the way for a fresh start,” as “allegations made against DWS and myself in past months have become a burden for the company, as well as for my family.”
Karl von Rohr, chair of DWS, stated that Wöhrmann had actually played a “major role” in the bank’s possession management operation over the last few years. “Under his leadership, DWS has expanded its market position and performed well in a recently challenging environment,” he stated.