The Full Federal Court today unanimously dismissed an appeal by Cigno Australia Pty Ltd and BSF Solutions Pty Ltd and their respective directors.
The Full Court has upheld the Federal Court’s judgment of 24 May 2024 that found Cigno Australia and BSF Solutions engaged in credit activity without an Australian Credit Licence and charged consumers prohibited fees. The Court also found that Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison were involved in those contraventions.
Justices Anderson, Cheeseman and Rofe held that ‘there was no error by the primary judge in concluding that Cigno and BSF established and implemented, for their joint benefit, a shared business model, namely the No Upfront Charge Loan Model’.
ASIC Chair Joe Longo said, ‘We are pleased the Full Court has confirmed the decision that Cigno Australia and BSF Solutions and its directors engaged in Credit Act breaches through its ‘No Upfront Charge Loan Model’.
‘ASIC considers that the model was designed to avoid consumer protection laws and to allow the charging of significant fees to consumers, many of whom were vulnerable and in financial distress’.
‘Cigno Australia and BSF Solutions provided $34 million in loans to more than 100,000 consumers between July 2022 and December 2022 through its ‘No Upfront Charge Loan Model’. Through this model, consumers were charged substantial fees of over $70 million.’
‘Consumer protection and taking action against and stopping harmful lending is an enduring ASIC priority.’
On a date to be set, the matter will come back before Justice Jackman for a hearing on the appropriate penalty.
The Court ordered that the Appellants pay ASIC’s costs for the appeal.
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Background
On 3 October 2023, ASIC began civil penalty proceedings in the Federal Court against Cigno Australia, its director Mark Swanepoel and BSF Solutions and its director, Brenton Harrison for allegedly providing credit without an Australian Credit Licence (23-266MR).
On 24 May 2024, the Federal Court found Cigno Australia and BSF Solutions engaged in credit activity without a licence and charged consumers prohibited fees. The Court also found that Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison were involved in the unlicensed activity and other Credit Act breaches (24-111MR).
On 11 June 2024, Cigno Australia and BSF Solutions filed an application for leave against the Federal Court’s decision of 24 May 2024. The appeal hearing concluded on 14 November 2024.
ASIC has also previously taken action against Cigno Pty Ltd and BHF Solutions Pty Ltd related to the above defendants, who operated a ‘Continuing Credit Model’ between October 2019 and March 2020.
In June 2022, the Full Federal Court found that the ‘Continuing Credit Model’ was unlawful and that these parties had engaged in credit activities without holding an Australian Credit Licence. In July 2023, on remittal, the Federal Court granted declarations and injunctions against Cigno and BHF (22-158MR).
Editor's note:
A case management hearing was held before Justice Jackman in the Federal Court of Australia New South Wales Registry on 21 July 2025. The penalty hearing has been listed for 7 April 2026 with a time estimate of three days.
Editor's note 2:
On 7 August 2025, Mr Brenton Harrison and Mr Mark Swanepoel lodged with the High Court, an Application for Special Leave to Appeal from the judgment of the Full Federal Court given on 10 July 2025.