According to the WSJ's report, federal prosecutors and the Securities and Exchange Commission are probing DWS after the company's former head of sustainability said the firm had exaggerated its use of sustainable investing criteria to manage assets. CNBC was unable to independently verify the report.
A spokesperson for DWS told CNBC via email that the company does not comment on regulatory matters.
The WSJ reported that DWS had misled investors over its sustainability efforts after having difficulties with its environmental, social and governance investing strategy.
The SEC was not immediately available for comment when contacted by CNBC.