Brazil is updating its investment agent regulation. What comes next?

Rules for autonomous investment agents are complex and alterations could have a profound effect on top brokerage XP Investimentos
Photo: Rokas Tenys/Shutterstock

As Brazil’s financial markets blossom, the entire investment industry develops alongside it. But this burgeoning growth is not without its ups and downs. In 2020, Brazil’s Securities Commission (CVM) will have the chance to untangle one of the main knots in the distribution system: the regulation over autonomous investment agents. However, changing the way the main link between clients and brokerages works in Brazil is not as easy as it seems and may have deep impacts on a major domestic player: XP Investimentos.

In 2011, the CVM established the current regulation for autonomous investment agents, which must apply...

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