By Brazil Stock Guide – Warren founder Tito Gusmão likened selling Master Bank’s CDBs to a supermarket offering “expired yogurt.” In an interview with Folha de S.Paulo, the former XP Inc. (NASDAQ: XP) partner said Brazil’s commission-based brokerage system is “riddled with conflicts of interest” that steer clients toward risky products.
According to Gusmão, brokers push products that pay the highest fees — such as Ambipar (B3: AMBP3) structured notes — regardless of client suitability. “The product itself isn’t bad, but it’s sold out of greed,” he said. Founded in 2017, Warren charges fixed management fees and did not offer CDBs from Master Bank or Americanas (B3: AMER3).
Gusmão said the CVM Resolution 179 — which increased disclosure on advisor compensation — was “almost cosmetic.” He argues for banning commissions altogether and replacing them with transparent, fixed fees, as practiced by family offices and institutional investors.