The Federal Court has ordered Cigno Australia, its director Mark Swanepoel, BSF Solutions and its director Brenton Harrison to pay a combined penalty of $7 million for engaging in credit activity without a licence and charging prohibited fees.
Cigno Australia was ordered to pay $3 million, with its director Mr Swanepoel ordered to pay $500,000. BSF Solutions was ordered to pay $3 million, and its director Mr Harrison was ordered to pay $500,000.
The penalty orders follow the Federal Court's findings on 24 May 2024 that Cigno Australia and BSF Solutions breached the Credit Act through their use of a No Upfront Charge Loan Model. The Court also found that Mr Swanepoel and Mr Harrison were involved in the unlicensed credit activity and other breaches of the Credit Act.
ASIC Chair Joe Longo said ASIC had taken regulatory and enforcement action over many years in response to various business models used by entities connected to Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison. He said ASIC believed the No Upfront Charge Loan Model was designed to sidestep consumer protection laws and put consumers at risk.
According to ASIC, from July 2022 to May 2024 Cigno Australia and BSF Solutions charged consumers more than $90 million in fees. Mr Longo said the outcome demonstrates ASIC's commitment to protecting Australians from predatory lending practices and holding individuals and companies accountable for their actions.
In his judgment, Justice Jackman stated that he accepted ASIC's submission that the decision to operate the No Upfront Charge Loan Model denied consumers important protections under the Credit Act and Credit Code. Those protections included limits on the fees and charges that can be imposed for the provision of credit.
Background and legal proceedings
On 3 October 2023, ASIC commenced civil penalty proceedings in the Federal Court against Cigno Australia, Mr Swanepoel, BSF Solutions and Mr Harrison for allegedly providing credit without an Australian Credit Licence. On 24 May 2024, the Federal Court found that Cigno Australia and BSF Solutions had engaged in credit activity without a licence and charged prohibited fees, and that their directors were involved in these breaches.
On 11 June 2024, Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison filed an appeal against the Federal Court's decision. On 10 July 2025, the Full Federal Court unanimously dismissed the appeal. On 6 November 2025, the High Court dismissed an application for special leave to appeal by Mr Swanepoel and Mr Harrison.
ASIC has also previously taken action against Cigno Pty Ltd and BHF Solutions Pty Ltd, companies related to the above defendants, which operated a "Continuing Credit Model" between October 2019 and March 2020.
