XP-Itaú feud exposes need for investment regulations in Brazil

XP Investimentos and Itaú have butted heads over their respective business models, potentially opening space for a debate on regulating investment agents

xp itau feud regulation
Photo: XP/Div.

Back in 2017, Itaú Unibanco paid BRL 6 billion for a 49-percent stake in XP Investimentos. This marriage between Brazil’s biggest private bank and the country’s leading independent brokerage firm was dubbed as one of the smartest in the history of the Brazilian financial market. Not only did the bank hedge its franchise, but it also multiplied its investment by 11 in just three years. Plus, it will have an option to purchase an additional 12.5-percent stake in 2022.

However, despite being highly profitable for both parties, the relationship between XP and Itaú has soured quickly. To the point in which...

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