ASIC Appeals Federal Court Decision on Cigno Australia and BSF Solutions Penalties

The Australian Securities and Investments Commission (ASIC) has lodged an appeal against a Federal Court ruling that imposed a $7 million civil penalty on Cigno Australia, its director Mark Swanepoel, BSF Solutions, and its director Brenton Harrison. The Federal Court had found that the companies conducted credit activities without a license and levied fees prohibited under credit legislation, with the directors implicated in the breaches. ASIC contends the penalty is insufficient as a deterrent. The companies' lending model generated over $90 million in unlawful fees, denying consumers protections under credit law, with no remediation offered for the harm caused. The appeal also seeks Full Federal Court clarification on two legal points: whether legal advice can mitigate penalties without being presented to the court, and whether the 'benefit obtained' from misconduct should be assessed by profit or gross revenue. A hearing date is pending.