Treasurers would vote with their feet if the Securities andExchange Commission implements some of the changes in money fundregulations currently under discussion. Most say they would stopusing money funds or decrease their use if the SEC requires fundsto adopt a floating net asset value or imposes a redemptionholdback on the funds, according to a survey commissioned by theInvestment Company Institute and conducted by consultancy TreasuryStrategies.

The survey results raise the possibility of “hundreds ofbillions of dollars leaving money market funds,” says Cathy Gregg,a partner at Treasury Strategies.

Treasury Strategies surveyed 203 executives with treasury andcash management responsibilities at corporations, governments andinstitutional investors such as insurance companies and real estatetrusts, with 64% representing organizations with annual revenue ofmore than $1 billion.