The Federal Court has ordered Cigno Australia and its director Mark Swanepoel and 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, its director Mr Swanepoel $500,000, BSF Solutions $3 million, and its director Mr Harrison $500,000.

The penalty orders follow the findings of the Federal Court on 24 May 2024 of breaches of the Credit Act by Cigno Australia and BSF Solutions through their use of the No Upfront Charge Loan Model and involvement in those breaches by Mr Swanepoel and Mr Harrison.

Chair of the Australian Securities and Investments Commission (ASIC) Joe Longo said:

‘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 believes their No Upfront Charge Loan Model was designed to sidestep consumer protections laws and put consumers at risk.

‘From July 2022 to May 2024, Cigno Australia and BSF Solutions charged consumers more than $90 million in fees.

‘Today’s outcome demonstrates ASIC’s commitment to protecting Australians from predatory lending practices and holding individuals and companies accountable for their actions.’

In delivering his judgment, Justice Jackman said:

“ASIC submits, and I accept, that the respondents’ decision to operate that model denied consumers important protections under the Credit Act and Credit Code. In relation to the No Upfront Charge Loan Model, those protections included limits on the fees and charges that can be imposed for the provision of credit.”

On 3 October 2023, ASIC began 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 Cigno Australia and BSF Solutions engaged in credit activity without a licence and charged consumers prohibited fees. The Court also found that Mr Swanepoel and Mr Harrison were involved in the unlicensed activity and other Credit Act breaches.

On 11 June 2024, Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison filed an appeal against the Federal Court’s decision and 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, 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.