Federal Court rules in ASIC's favour against Cigno Australia, BSF Solutions

ASIC had accused both companies of providing credit without a licence

Federal Court rules in ASIC's favour against Cigno Australia, BSF Solutions

The Federal Court has ruled in favour of ASIC in a legal bout against Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions).

The court determining that both companies engaged in credit activities without an Australian Credit licence and charged consumers prohibited fees. Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison were also found to be involved in the unlicensed activity as well as other violations of the Credit Act.

ASIC kicked off civil penalty proceedings against Cigno Australia and BSG Solutions as well as Swanepoel and Harrison on 3 October 2023. The commission accused the two companies of providing credit without a licence.

Most Read

"ASIC has taken regulatory and enforcement action over many years to respond to various business models used by entities connected to Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison", ASIC deputy chair Sarah Court said. "We took this action because we were concerned that the Cigno Australia and BSF Solutions ‘No Upfront Charge Loan Model’ provided short-term loans totalling over $34m and charged over $70m in fees to more than 100,000 consumers between July 2022 and December 2022".

Court orders have been issued to prevent Cigno Australia and BSF Solutions from recovering further fees, charges, or amounts such as late payment fees and amounts of principal. ASIC also confirmed that a further case management hearing has been scheduled for 21 June for the consideration of additional relief against the respondents such as adverse publicity orders and civil penalties.

Last Friday, an application made by the respondent to stay the court’s orders was shot down. The respondents were ordered to shoulder ASIC’s expenses.

Recent articles & video

Carroll O'Dea celebrates 125 years with women-centric promotions round

Former Shell plc legal director among ACC noms for global board

Clayton Utz lends a hand to Children's Cancer Institute on lease agreement

Ex-AICM Queensland president commences with Keypoint Law

High Court affirms immunity for foreign state-owned entities in winding-up proceedings

KWM expands partnership with nine promotions

Most Read Articles

NSW justice system welcomes new judges

Seven ascend to Hall & Wilcox partnership in huge promotions round

HWL Ebsworth unveils board of partners

KWM expands partnership with nine promotions