SVP Ian McCoy gave an update (not really) on the status of the Franklin Templeton contract with FIS for Customer Operations. FT Customer Service moved back to FT this last year. FT has begun contract negotiations with another firm to provide Customer Operations service. Until that contract is signed, no information about the fate of those employees can be given. That process can take eighteen months. More employees trapped in limbo, along with those from FT Customer Service who are servicing Victory/State Farm Funds. They are not permanent employees either. Morale is extremely low as senior leadership continues to have high service expectations of what are essentially hostages. Leaving is not as easy as it might seem. Great job, Stephanie!
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@c0 absolutely. FT made the initial choice. Thanks, President of Franklin Templeton Investor Services Basil Fox! They have paid a huge price in the blow to their reputation among their financial professionals who choose to put their clients in Franklin Funds. They lost millions of dollars in the cost of this debacle including standing up a call center under short notice to replace FIS. All well deserved, but lots of employees paid the price too and they didn't deserve it. They were not insulated by big salaries and bonuses. Some have been left out in the cold.
@a9 having seen this played out before, with employees robbed of their severance after enduring such long periods of instability, making commitments to them is not beyond they reach. Not that anyone would believe them at this point.
While I am NO fan of Ferris, all the blame should not be directed at FIS. FT was being greedy and cheap. They considered the idea and approved it. So they deserve some blame too.
What do people expect? Ian and his team are under contract and are expected to deliver the service they are paid to provide. Nobody is being held hostage; while leaving may not be easy, it remains a personal choice. Ian is right: until the facts are clear and a contract is signed, there is little more that can be communicated. Speculation won’t change that.