Section 242.1 - Authority and purpose(a)Authority. This part is issued by the Board pursuant to sections 102(a)(7) and (b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) (12 U.S.C. 5311(a)(7) and (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) of the Dodd-Frank Act (12 U.S.C. 5311(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) of the Dodd-Frank Act for purposes of-(i) Section 113 of the Dodd-Frank Act (12 U.S.C. 5323 ) 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) of the Dodd-Frank Act (12 U.S.C. 5365(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 et seq.) that is a bank holding company described in section 165(a) of the Dodd-Frank Act (12 U.S.C. 5365(a) ) .78 FR 20776, Apr. 5, 2013, as amended at 84 FR 59096, Nov. 1, 2019