The chief executive officer of Deutsche Bank AG’s asset-management subsidiary DWS Group DWS, -4.43% will step down, the German lender said Wednesday, hours after a raid by German authorities on their Frankfurt offices.
CEO Asoka Woehrmann, who has led DWS since 2018, said he would resign “in agreement with the company”, to be replaced by Stefan Hoops effective June 10, after DWS’s annual general meeting on June 9, Deutsche Bank DB, -0.62% said.
Both Deutsche Bank and DWS were searched on Tuesday by law enforcement on allegations of greenwashing at DWS.
Regulators have been stepping up scrutiny of such funds as investors pour cash into sustainable financing.
In summer 2021, the Securities and Exchange Commission and federal prosecutors opened investigations into claims that DWS overstated its sustainable-investing criteria in managing its assets.
It came after whistleblower Desiree Fixler said DWS had misrepresented its environmental, social and governance capabilities.
“We have continuously cooperated fully with all relevant regulators and authorities on this matter and will continue to do so,” a DWS spokesperson said in response to the searches on Tuesday.
Last week, the SEC fined Bank of New York Mellon Corp. $ 1.5 million for misleading claims about ESG funds.
Mr. Woehrmann had continued to enjoy the backing of Deutsche Bank’s management, with CEO Christian Sewing reiterating this at its full-year results press conference in February.
“Asoka Woehrmann has played a major role in the success of our asset management in recent years,” Karl von Rohr, chairman of DWS’s supervisory board, said.
In addition to his role as head of DWS, Mr. Hoops will also take responsibility for asset management at group level at Deutsche Bank.
Mr. Hoops was previously responsible for the German lender’s corporate bank, a role that will be taken over by David Lynne, current head of corporate banking in the Asia-Pacific region, Deutsche added.
“Asset management is and remains an important part of our business model. We are convinced that DWS will continue its success story under Stefan Hoops’s leadership,” Mr. Sewing, said.
Matthias Goldschmidt in Frankfurt contributed to this article.
Write to Ed Frankl at edward.frankl@dowjones.com