The Financial Stability Oversight Council is closer to deciding which nonbank financial firms will end up classified as "systemically important financial institutions."

Banks in this category – otherwise known as SIFIs – are labeled as such by the Treasury’s FSOC to signify the inherent risks the companies pose to the financial system when in distress.

The labeling of large nonbank firms as SIFIs is an initiative outlined in the Dodd-Frank Act.

Compass Point Research & Trading Group noted Wednesday that American International Group (AIG) and GE Capital (GE) chose not to appeal the proposed SIFI designation from FSOC.

Only Prudential (PRU) plans to appeal the designation, the research firm pointed out.