(d) Automatic rescission of designation If a nonbank financial company does not meet the criteria described in subsection (b) for 9 consecutive months, the Council shall immediately, and automatically rescind the designation of the nonbank financial company as systemically important. (e) Application For purposes of this section, the term nonbank financial company does not include a Government-sponsored enterprise or an investment company registered with the Commission under the Investment Company Act of 1940. (f) Definition In this section and with respect to a nonbank financial company, the term designated as systemically important means the nonbank financial company is subject to a determination under section 113 that the nonbank financial company shall be supervised by the Board of Governors and shall be subject to prudential standards, in accordance with this title. . (b) Clerical amendment The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 113 the following: Sec. 113A. Automatic designation of certain large nonbank financial companies. . (c) Effective date This section and the amendments made by this section shall take effect not later than 9 months after the date of the enactment of this Act. 4. Council regulation of systemically risky activities (a) In general Subtitle A of the Financial Stability Act of 2010 ( 12 U.S.C. 5321 et seq.), as amended by section 2, is further amended by adding at the end the following: 125. Council regulation of systemically risky activities (a) Authority of the Council Subject to subsection (b), the Council shall issue such rules as may be required to regulate an activity or practice if the Council determines that the conduct, scope, nature, size, scale, concentration, or interconnectedness of such activity or practice could create or increase the risk of significant liquidity, credit, or other problems spreading among bank holding companies and nonbank financial companies,