‘Failed’ Crescent super fund members transition beyond performance test

Members of a Crescent Wealth promoted superannuation product which was amongst the first to fail the Australian Prudential Regulation Authority (APRA) choice performance test have now transitioned to a fund not captured by the test.

While responding to Federal Opposition questioning around the role of an Australian Labor Party (ALP) “New South Wales powerbroker”, Talal Yassine, in the fund, APRA revealed that members of the fund had been transferred to arrangements not currently subject to the performance test.

APRA has revealed that the Crescent Wealth super fund in question failed the 2023 performance test and was closed in May, this year.

“Until recently, Mr Yassine was a principal of Crescent Wealth group which is not an APRA-regulated entity. A company within the Crescent Wealth group was the promoter of the Crescent Wealth Registerable Superannuation Entity (RSE). The trustee of the Crescent Wealth-promoted RSE was Equity Trustees Superannuation Limited which is an APRA-regulated entity.”

“In this context, a promoter is responsible for matters such as design of the products, investment strategy / management and marketing / promotion and works closely with the trustee. APRA does not regulate promoters,” APRA said in answer to questions from Victorian Liberal Senator and former Financial Services Minister, Jane Hume.

The regulator said that after the Crescent Wealth fund failed the performance test, members of the fund were transferred to the Salaam division of the Russell Investments Master Trust registered superannuation entity (RSE).

“This RSE is under the trusteeship of Total Risk Management Pty Limited, an APRA-regulated entity,” APRA said.

“As currently specified by the legislation, the Performance Test applies to Trustee-directed products (TDPs) and MySuper Products offered by Russell Investments Master Trust,” APRA said.

“However, as Crescent Wealth members have been moved into products that are externally managed (in this case, by the promoter Salaam), these products are not currently classified as TDPs and therefore are not captured by the performance test.”