The Australian Securities and Investments Commission reported that the Full Federal Court unanimously dismissed an appeal by Cigno Australia Pty Ltd and BSF Solutions Pty Ltd and their directors, upholding the Federal Court’s May 2024 findings that the firms engaged in credit activity without an Australian Credit Licence and charged consumers prohibited fees. The Full Court found no error in the primary judge’s conclusion that Cigno and BSF established and implemented a shared “No Upfront Charge Loan Model” for their joint benefit, and it upheld findings that Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison were involved in the contraventions. ASIC characterised the model as designed to avoid consumer protection laws and facilitate significant fees, noting that between July 2022 and December 2022 the firms provided AUD 34 million in loans to more than 100,000 consumers and charged fees of over AUD 70 million. The appellants were ordered to pay ASIC’s costs of the appeal. The matter will return to Justice Jackman on a date to be set for a hearing on the appropriate penalty.
Australian Securities & Investments Commission 2025-07-10
Australian Securities and Investments Commission secures Full Federal Court dismissal of Cigno Australia and BSF Solutions appeal over unlicensed credit model
The Australian Securities and Investments Commission announced that the Full Federal Court dismissed an appeal by Cigno Australia Pty Ltd, BSF Solutions Pty Ltd, and their directors, affirming findings of unlicensed credit activity and prohibited fees. The court upheld that their "No Upfront Charge Loan Model" circumvented consumer protection laws, resulting in AUD 34 million in loans and over AUD 70 million in fees from July to December 2022. Directors Mark Swanepoel and Brenton Harrison were implicated, and the appellants must cover ASIC's appeal costs. The case will return to Justice Jackman for penalty determination.