---
kind: "section"
citation: "12 C.F.R. § 242.1"
title: "12"
number: "242.1"
heading: "Authority and purpose."
url: "https://uscodex.org/cfr/12/242.1"
---

# §242.1. Authority and purpose.

- (a) **Authority.** This part is issued by the Board pursuant to sections [102(a)(7)](/cfr/12/102.md?p=a-7) and [(b)](/cfr/12/102.md?p=a-b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) (12 U.S.C. [5311(a)(7)](/usc/12/5311.md?p=a-7) and [(b)](/usc/12/5311.md?p=a-b)).
- (b) **Purpose.**
  - (1) This part establishes the criteria for determining if a company is “predominantly engaged in financial activities” as required under [section 102(b)](/cfr/12/102.md?p=b) of the Dodd-Frank Act ([12 U.S.C. 5311(b)](/usc/12/5311.md?p=b)) for purposes of Title I of the Dodd-Frank Act.
  - (2) This part defines the terms “significant nonbank financial company” and “significant bank holding company” as provided in [section 102(a)(6)](/cfr/12/102.md?p=a-6) of the Dodd-Frank Act for purposes of—
    - (i) [Section 113](/cfr/12/113.md) of the Dodd-Frank Act ([12 U.S.C. 5323](/usc/12/5323.md)) relating to the designation of nonbank financial companies by the Financial Stability Oversight Council (Council) for supervision by the Board; and
    - (ii) [Section 165(d)(2)](/cfr/12/165.md?p=d-2) of the Dodd-Frank Act ([12 U.S.C. 5365(d)(2)](/usc/12/5365.md?p=d-2)) relating to the credit exposure reports required to be filed by—
      - (A) A nonbank financial company supervised by the Board; and
      - (B) A bank holding company or foreign bank subject to the Bank Holding Company Act (BHC Act) ([12 U.S.C. 1841](/usc/12/1841.md) et seq.) that is a bank holding company described in [section 165(a)](/cfr/12/165.md?p=a) of the Dodd-Frank Act ([12 U.S.C. 5365(a)](/usc/12/5365.md?p=a)).

## Notes

### Amendments

[78 FR 20776, Apr. 5, 2013, as amended at 84 FR 59096, Nov. 1, 2019]

### Authority

Authority: 12 U.S.C. 5311.

### Source

Source: 78 FR 20776, Apr. 5, 2013, unless otherwise noted.

### Amendments

[78 FR 20776, Apr. 5, 2013, as amended at 84 FR 59096, Nov. 1, 2019]