Wöhrmann stepped down at the end of DWS' annual general meeting (AGM) on 9 June after a police raid at the asset manager connected to allegations of greenwashing at the firm.

Hoops assumed the role of CEO and managing director with immediate effect. He has left his position as the head of Deutsche Bank Aktiengesellschaft’s Corporate Bank.

Scandal broke early in the morning on Tuesday when as many as 50 members of the German police force gained access to Deutsche Bank and DWS’ iconic towers in the financial district of Frankfurt.

Federal police were accompanied by public prosecutors from Frankfurt, and officials from the regulator, BaFin.

Frankfurt police prosecutors’ office said the investigation had been spurred by reports in the international and national media that DWS had sold ‘green financial products’ as ‘greener’ or ‘more sustainable’ than they really were.

‘After examination, sufficient factual evidence has emerged that, contrary to the statements made in the sales prospectuses of DWS funds, ESG factors were not taken into account at all in a large number of investments.’

It is understood that this could allegedly amount to prospectus fraud.

Resigning, Wöhrmann said: 'Allegations made against DWS and myself in past months have become a burden for the company, as well as for my family and me. In order to protect the institution and those closest to me, I would like to clear the way for a fresh start.'

Said Hoops: 'I am very pleased to have the privilege of leading DWS, a first-class asset manager, and to further expand our market position and relevance with this great team.'

Karl von Rohr, president of Deutsche Bank and chairman of the supervisory board of DWS, commented: 'I would like to thank Asoka Woehrmann for his many years of passionate work and commitment to DWS. Thanks to his leadership, DWS has reached new heights, successfully established itself on the stock exchange and is very well positioned for the future.

'I have great respect for his decision to resign – it is a testament to his sense of responsibility.

'With Stefan Hoops, an outstanding manager stands ready to take over at the helm of DWS. In recent years, he has demonstrated both his capital markets expertise and his excellent leadership qualities in various positions. His strategic foresight and experience in digitalisation will provide important impetus for the continued development of DWS.'