iSelect holds firm despite ASIC ruling
Insurance comparison website iSelect has defended a "potentially misleading" announcement it made to the stock exchange two months ago, after the corporate watchdog demanded it be withdrawn or modified.
In a statement to the market on Wednesday, iSelect said it would leave the August 29 announcement as it was until it had finalised its accounts for the September quarter.
BusinessDay revealed on Tuesday that the regulator demanded the company either clarify or retract the announcement, stating in a letter to iSelect lawyers it believed the company cut internal revenue forecasts for its health and car insurance businesses without telling the market.
iSelect confirmed that it had received a notice from the Australian Securities and Investments Commission asking it to explain the assumptions underpinning its earnings before interest, tax, depreciation and amortisation forecast for the year to December of $30 million.
But it said in the interests of shareholders it would only issue a trading update to the market "once it had finalised its management accounts for the September quarter" which would be "within the coming days".
iSelect shares fell 15 per cent after the company listed on the Australian Stock Exchange on June 24. They have not since traded above their issue price of $1.85, and closed on Wednesday down 2.5¢ at $1.20.