SEC announces settlement with Deutsche Bank over alleged misleading ESG claims (2023)
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The SEC on September 25 announced its penalties and settlement with Deutsche Bank over alleged misleading ESG marketing claims:
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Deutsche Bank AG’s DWS asset management arm agreed to pay a total of $25 million to settle Securities and Exchange Commission probes into alleged greenwashing and anti-money laundering lapses. The penalties include $19 million for “materially misleading statements” about how it incorporates environmental, social, and governance factors into research and investment recommendations and $6 million for failing to develop a mutual fund AML program, the SEC said in a statement on Monday. DWS didn’t admit or deny the SEC’s findings. … “Investment advisers must ensure that their actions conform to their words,” Sanjay Wadhwa, deputy director of the SEC’s enforcement division, said in the statement on Monday. “DWS advertised that ESG was in its ‘DNA,’ but, as the SEC’s order finds, its investment professionals failed to follow the ESG investment processes that it marketed.”… A spokesman for DWS said the firm is “pleased that the SEC recognized our cooperation in the investigation and our remediation efforts.” The ESG order found “no misstatements in relation to our financial disclosures or in the prospectuses of our funds.” “The order also makes clear that there was no intent to defraud, and the weaknesses identified by the SEC are in relation to processes and procedures that the firm has already taken steps to address,” the spokesman said.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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