Cetip loses monopoly and shares are under pressure.
Without the controversial agreement with Fenaseg, the company could lose all the revenue it currently earns from vehicle registration; with the change, Detran (the state traffic department) began directly charging the equivalent of R$ 54,66 for the registration of each financing contract; the news pressured Cetip's shares, which reacted with a 2,5% drop.
247 – Cetip lost its monopoly on sending vehicle financing contracts made by banks in São Paulo. Before the regulation, the company collected payments directly from the banks and passed on part of the amount to Detran (the state traffic department), through a controversial agreement signed with Fenaseg (the National Federation of Insurance Companies).
Now, the São Paulo traffic department has started charging the equivalent of R$ 54,66 directly for the registration of each contract and has opened the accreditation process for any company to send contract information to the agency.
With the change, published on May 1st in the State Official Gazette, Cetip's shares reacted with a 2,5% drop, the largest among the stocks that make up the Ibovespa, which closed yesterday with a 2% increase.
Last year, the company recorded revenue of R$ 176 million, representing a 21,1% increase compared to 2013.
Read here A report by 'Valor' on the subject.