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
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.
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.
A directions hearing has been listed for 31 October 2019 in Sydney at 9.30am before Justice Stewart.
Editor's note 2:
The matter has been listed for hearing on 30 March 2020.
Editor's note 3:
The hearing before Justice Stewart has concluded. The Court has reserved its decision.
Editor's note 4:
On 15 April 2020, Justice Stewart handed down his decision dismissing Cigno’s application with costs awarded to ASIC. For more detail see 20-089MR.