Court Orders $7 Million in Penalties Against Unlicensed Lenders

The Federal Court has ordered Cigno Australia, BSF Solutions, and their directors to pay a combined $7 million in penalties for unlicensed credit activity and charging prohibited fees. Cigno Australia was fined $3 million and its director Mark Swanepoel $500,000. BSF Solutions was fined $3 million and its director Brenton Harrison $500,000.

The penalties follow a May 2024 Federal Court finding that the companies breached the Credit Act through a 'No Upfront Charge Loan Model'. The Court found directors Swanepoel and Harrison were involved in the breaches. ASIC Chair Joe Longo stated the model was designed to sidestep consumer protection laws, with the companies charging over $90 million in fees from July 2022 to May 2024.

Justice Jackman noted the operation of the model denied consumers key protections under the Credit Act, including limits on fees. ASIC initiated proceedings in October 2023. Following a June 2024 appeal by the defendants, the Full Federal Court dismissed the appeal in July 2025. The High Court refused special leave to appeal in November 2025.

ASIC has previously taken action against related entities Cigno Pty Ltd and BHF Solutions Pty Ltd for an unlawful 'Continuing Credit Model', with the Full Federal Court ruling against them in June 2022.