iSelect replies to ASIC probe

iSelect has responded to the media coverage in relation to ASIC's information request as its share price slips lower.

iSelect (ISU) believes it has fully complied with its regulatory obligations following media reports the Australian Securities and Investment Commission (ASIC) had demanded internal documents as part of a probe into the newly listed group.  

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.

Earlier it was revealed the regulatory body had demanded the company relinquish its internal documents in relation to its disastrous stock exchange debut.

One notice from ASIC, which was obtained by Fairfax Media, required the insurance comparison website 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.

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

The health insurance comparison business has slipped 0.4% to $1.40 at 1025 AEST.

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