iSelect falls on ASIC probe

iSelect has dropped to a fresh record low after it was revealed the Australian Securities Investment Commission had requested the company relinquish all its documents in relation to its calamitous stock exchange debut.

The health insurance comparison business's share price dropped 3.2% to $1.36 at 1223 AEST – which is 26.5% below its debut at $1.85 just under three months ago.

One notice from ASIC, obtained by Fairfax Media, required iSelect to hand over all of its documents relating to the full-year profit miss last month – including financial records, emails, and meeting minutes – as well as earlier statements relating to its prospectus.

In an announcement to the Australian Securities Exchange (ASX) this morning, the company said it will "fully cooperate" and that it remains of the view it has fully complied with all of its regulatory obligations, particularly those regarding continuous disclosure.

Section 674 of the Corporations Act requires listed companies to announce to the market ''information that a reasonable person would expect, if it were generally available, to have a material effect'' on its share price.

iSelect nosedived late last month after it was revealed revenue and net profit missed their targets for the 12 months to June, even though the company had said it would meet guidance in its prospectus just two months earlier. The company listed on the stock exchange on June 24, less than a week before it ruled off its books for the end of the financial year.

The missed guidance shredded iSelect's credibility as it was the second major hitch for the operation, the first being when the company slumped 15% on its debut.