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Afterpay is Built on Underregulated Market

Why Jack Dorsey s Square paid a record $39 billion for Afterpay

The A$39 billion (US$29 billion) that Twitter founder Jack Dorsey’s digital payments company Square is paying to acquire Australian upstart payments outfit Afterpay is the biggest takeover deal in Australian corporate history. It surpasses the A$32 billion European commercial real estate giant Unibail-Rodamco agreed to pay for Frank Lowy’s Westfield Corporation in 2017. The deal marks an extraordinarily successful journey for Afterpay, a company founded in 2014 and listed on the Australian Stock Exchange in May 2016 at $1 a share. At the close of last week, before this deal was announced, its share price was A$96.66, giving it a market capitalisation of about $27.5 billion.

ASIC appeals Cigno and BHF Solutions Federal Court decision

Date Time ASIC appeals Cigno and BHF Solutions Federal Court decision ASIC has appealed the Federal Court decision which dismissed its allegations that Cigno Pty Ltd (Cigno) and BHF Solutions Pty Ltd (BHF Solutions) contravened the National Consumer Credit Protection Act 2009 (National Credit Act). Cigno and BHF Solutions operate a lending model that provide small loans to large numbers of consumers and charge substantial fees on those loans. ASIC alleged that Cigno and BHF Solutions breached the National Credit Act by engaging in credit activity without holding a credit licence. On 23 June 2021, the Federal Court dismissed ASIC’s application. ‘We have appealed this decision because we are concerned its effect will be to limit the application of the credit legislation, potentially denying vulnerable consumers the protections afforded by the National Credit Act and National Credit Code,’ ASIC Commissioner Sean Hughes said.

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