Its certainly in the telencephalon:
It appears in higher animals and is most developed and differentiated in humans.
(The telencephalon is the newest structure in the phylogenetic sense, with mammals having the largest and most well-developed among all species.)
Structure
The telencephalon is composed of the following sub-regions;
- Limbic system
- Cerebral cortex or cortices of the cerebral hemispheres.
- Basal ganglia
- Olfactory bulb
Composition
The telencephalon comprises what most people think of as the "brain." It lies on top of the brainstem and is the largest and most well-developed of the five major divisions of the brain. The telencephalon is the newest structure in the phylogenetic sense, with mammals having the largest and most well-developed among all species. It emerges from the prosencephalon, the first of three vesicles that form from the embryonic neural tube.
The traditional division first sectioned the telencephalon into four parts. More recent research describes further sub-divisions.
In humans, the telencephalon surrounds older parts of the brain. Limbic, olfactory, and motor systems project fibers from subcortical (deeper) areas of the cerebrum to parts of the brainstem. Cognitive and volitive systems project fibers from cortical areas of the cerebrum to thalamus and to other regions of the brainstem. The neural networks of the telencephalon facilitate complex learned behaviors, such as language.
The cerebrum is the largest part of the brain, and contains white matter and grey matter. Grey matter is highly folded; with respect to function, this is thought to allow a greater number of cells in the same volume due to the increase in its surface area. The telencephalon includes regions of archipalliar, paleopalliar, and neopalliar origin. Profound development of the neopallium, which comprises the cerebral cortex, is unique among humans and Old World monkeys.
Functions
Note: As the telencephalon is a gross division with many subdivisions and sub-regions, it is important to state that this section lists the functions that the telencephalon as a whole serves.
Language and communication
Speech and language are mainly attributed to parts of the cerebral cortex, which is one portion of the telencephalon. Motor portions of language are attributed to Broca's area within the frontal lobe. Speech comprehension is attributed to Wernicke's area, at the temporal-parietal lobe junction. These two regions are interconnected by a large white matter tract, the arcuate fasciculus. Damage to the Broca's area results in expressive aphasia (non-fluent aphasia) while damage to Wernicke's area results in receptive aphasia (also called fluent aphasia)
Movement
The telencephalon attributes motor function to the body. These functions originate within the primary motor cortex and other frontal lobe motor area. In many cases when this part of the brain is damaged, the brain is unable to send signals to nerves that innervate muscles motoneurons, and can lead to diseases such as Motor Neurone Disease. This kind of damage results in loss of muscular power and precision rather than total paralysis, because there are other, older portions of the brain that also subserve motor function.
Olfaction
The olfactory bulb is on the underside of the anterior-most portion of the brain. This is a rather large portion of the telencephalon in most mammals. However, in humans, this part of the brain is relatively smaller. Damage to the olfactory bulb results in a loss of the sense of smell.
Memory
Memory formation is associated with the hippocampus. This association was originally described after a patient (HM) had both his hippocampuses (left and right) surgically removed to treat severe epilepsy. After surgery, HM had anterograde amnesia, or the inability to form new memories.