First Data 2011 Annual Report Download - page 13

Council, an interagency body comprised of the federal bank and thrift regulators and the National Credit Union Association and
national regulatory bodies.
FDR Limited ("FDRL") in the United Kingdom is authorized and regulated by the Financial Services Authority ("FSA"). The
FSA is the single regulatory authority for the full range of financial services in the United Kingdom, including banking, investment,
mortgage and insurance mediation services. FDRL is authorized by the FSA to carry on an insurance mediation business for the
purpose of arranging insurance to its issuer customers' cardholders. As an FSA regulated firm, FDRL is required to meet certain
prudential and conduct of business requirements.
In the European Union, Directive 2007/60 EC, the "Payment Services Directive," was released by the European Parliament and
by the Council on November 13, 2007, setting a framework for future regulation of bodies and corporations such as the national
central banks, financial institutions, e-money institutes and payment institutions. The Payment Services Directive was implemented in
most EU member states via national legislation effective November 1, 2009. As a result of the implementation of the Payment
Services Directive, a number of the Company's subsidiaries in the International segment have applied for and received a Payment
Institution License in the countries where such subsidiaries do business. As licensed payment institutions, the relevant entities are
subject to regulation and oversight in the applicable member state, which includes amongst other things, the requirement to maintain
specified regulatory capital.
First Data Loan Company Canada ("FDLCC"), through which the Company conducts some of its merchant acquiring activities
in Canada, is a Canadian loan company subject to regulation, examination and oversight by the Office of the Superintendent of
Financial Institutions and to various provincial registration and licensing requirements. First Data Trust Company, LLC ("FDTC"),
engages in trust activities previously conducted by the trust department of a former banking subsidiary of the Company. FDTC is
subject to regulation, examination and oversight by the Division of Banking of the Colorado Department of Regulatory Agencies.
These financial institution subsidiaries are also subject to various national and local banking and consumer protection laws and
regulations that apply to the activities they conduct. Since FDTC is not a "bank" under the Bank Holding Company Act of 1956, as
amended ("BHCA"), and FDLCC does not operate any banking offices in the U.S. or do business in the U.S., except such business as
may be incidental to its activities outside the U.S., the Company's affiliation with FDTC and FDLCC does not cause it to be regulated
as a bank holding company or financial holding company under the BHCA.
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.
Further, in the Company's International segment, several subsidiaries provide services such as factoring or settlement that make
them subject to regulation by local banking agencies, including the National Bank of Slovakia, the National Bank of Poland and the
German Federal Financial Supervision Agency.
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. 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 data protection and privacy laws which in some cases may be more restrictive than the Directive and impose
additional duties on companies regarding registration/notification requirements and 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. 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. In the United
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