The Australian Securities and Investments Commission (ASIC) reported that the Federal Court has ordered Cigno Australia, BSF Solutions and their directors Mark Swanepoel and Brenton Harrison to pay a combined AUD 7 million in penalties for engaging in credit activity without a licence and charging prohibited fees. Cigno Australia and BSF Solutions were each ordered to pay AUD 3 million, with Swanepoel and Harrison ordered to pay AUD 500,000 each. The orders follow the Court’s findings that the firms breached the Credit Act through their No Upfront Charge Loan Model, which ASIC said resulted in more than AUD 90 million in consumer fees between July 2022 and May 2024; Justice Jackman accepted ASIC’s submission that the model denied consumers protections under the Credit Act and Credit Code, including limits on fees and charges for the provision of credit. ASIC began civil penalty proceedings in October 2023 and the Federal Court made its breach findings in May 2024. The appeal was unanimously dismissed by the Full Federal Court in July 2025, and the High Court dismissed an application for special leave to appeal in November 2025.
Australian Securities & Investments Commission 2026-04-17
Australian Securities and Investments Commission secures AUD 7 million penalties against Cigno Australia and BSF Solutions over unlicensed credit and prohibited fees
The Australian Securities and Investments Commission reported that the Federal Court ordered Cigno Australia, BSF Solutions and their directors to pay AUD 7 million in penalties for unlicensed credit activity and charging prohibited fees. The Court found their No Upfront Charge Loan Model breached the Credit Act and denied consumers protections under the Credit Act and Credit Code, with more than AUD 90 million in fees charged between July 2022 and May 2024. Civil penalty proceedings commenced in October 2023 and appeals to the Full Federal Court and High Court were dismissed.