First Data 2009 Annual Report Download - page 17

TeleCheck Payment Systems Limited in Australia holds an Australian Financial Services License under
Chapter 7 of the Corporations Act, which regulates the provision of a broad range of financial services in
Australia. The license, issued by the Australian Securities and Investments Commission, entitles the Australian
operations of TeleCheck to deal in and provide general financial product advice about its check guarantee and
check verification product (which falls within the definition of a risk management product under the legislation).
The License and the Act requires that TeleCheck’s Australian operations issue product documents that comply
with specific content requirements and follow prescribed procedures failing which penalties apply.
First Data Slovakia is registered with the National Bank of Slovakia as an authorized participant to the
Slovak payment system.
First Data Polska S.A. is regulated as a settlement agent by the National Bank of Poland.
As a result of a recent change in legislation in Germany, the provision of factoring services to financial
institutions as historically provided by First Data Deutschland GmbH has become regulated by the Federal
Banking Supervision Agency (BaFin) and First Data Deutschland GmbH is now regulated by BaFin as financial
services provider under the German Federal Banking Act.
Privacy and Information Security Regulations
Each of the Company’s segments provides services that may be subject to various state, federal and foreign
privacy laws and regulations. Relevant federal privacy laws include the Gramm-Leach-Bliley Act, which applies
directly to a broad range of financial institutions and indirectly (or in some instances directly) to companies that
provide services to financial institutions, and the Health Insurance Portability and Accountability Act, which
applies directly to certain healthcare-related businesses and indirectly (or in some instances directly) to
companies that provide services to such businesses. Relevant foreign privacy laws include Directive 95/46 EC of
the European Parliament and of the Council of 24 October 1995, as such directive is implemented in each
member state of the European Union (however each member state has its own privacy laws which in some cases
may be more restrictive than the Directive and impose additional duties on companies regarding handling/
transfer of personal data); the Australian Privacy Act of 1988; and the Personal Information Protection and
Electronic Documents Act in Canada. These laws and their implementing regulations restrict the collection,
processing, storage, use and disclosure of personal information, requires notice to individuals of privacy practices
and provides individuals with certain rights to prevent use and disclosure of protected information. These laws
also impose requirements for safeguarding and proper destruction of personal information through the issuance
of data security standards or guidelines. In addition, there are state laws restricting the ability to collect and
utilize certain types of information such as Social Security and Driver’s License Numbers, etc. Certain state laws
impose similar privacy obligations as well as, in certain circumstances, obligations to provide notification to
affected individuals, state officers and consumer reporting agencies, as well as businesses and governmental
agencies that own data, of security breaches of computer databases that contain personal information.
Credit Reporting and Debt Collections Regulations
TeleCheck Services Inc. (“TeleCheck”) is subject to the Federal Fair Credit Reporting Act (“FCRA”) and
various similar state laws based on TeleCheck’s maintenance of a database containing the check-writing histories
of consumers and the use of that information in connection with its check verification and guarantee services.
The collection business within TRS Recovery Services, Inc. (“TRS”) is subject to the Fair Debt Collection
Practices Act and various similar state laws. TRS has licenses in a number of states in order to engage in
collection in those states. FDRL has a license under the Consumer Credit Act to enable it to undertake collections
activity on behalf of its card issuing customers through calls and letters to the debtors. First Data Deutschland
and TeleCash in Germany each hold a license under the German Legal Services Act to undertake collections
activities on behalf of its card issuing customers as well as against their own debtors.
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