Super software providers accused of rorting stapling

The Federal Government has sent a warning shot over the bows of superannuation software providers which it is claimed have been undermining the stapling regime.

Within the Government’s response to the Your Future, Your Super review, the Government specifically stated that it had “uncovered inappropriate behaviour where software providers are not only undermining stapling, but also directing employees towards products that associated with the software provider”.

“This behaviour should cease voluntarily,” the Government’s response said. “If it does not cease, then the Government will explore changes to law or regulation to prevent it continuing.”

The YFYS review report, released late yesterday, detailed how some stakeholders had raised concerns about onboarding software that “encourages employees to make a choice, including by presenting employees with the option to choose funds that have paid to be advertised on the platform”.