Cigno seeks judicial review of ASIC decision to make short term credit product intervention order

On 20 September 2019 Cigno Pty Ltd (Cigno) made an application in the Federal Court of Australia in New South Wales seeking the following relief under s39B of the Judiciary Act 1903:

  • an order to quash the ASIC Corporations (Product Intervention Order – Short Term Credit) Instrument 2019/917 (Short Term Credit PIO);
  • a declaration that the Short Term Credit PIO is invalid; and
  • costs.

On 20 September 2019 ASIC was provided with a draft copy of the application and on 26 September 2019 ASIC was served with a sealed copy of the application.

ASIC is considering the application.

The Short Term Credit PIO remains in force while the matter is before the Court.

Background

On 12 September 2019 ASIC made a product intervention order by way of legislative instrument in relation to short term credit: 19-250MR. The order came into force on 14 September 2019 and Cigno is an affected party.

This decision follows ASIC’s consultation on the proposed intervention to stop significant consumer harm in short term credit.

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