Treasurers would vote with their feet if the Securities and Exchange Commission implements some of the changes in money fund regulations currently under discussion. Most say they would stop using money funds or decrease their use if the SEC requires funds to adopt a floating net asset value or imposes a redemption holdback on the funds, according to a survey commissioned by the Investment Company Institute and conducted by consultancy Treasury Strategies.

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

Treasury Strategies surveyed 203 executives with treasury and cash management responsibilities at corporations, governments and institutional investors such as insurance companies and real estate trusts, with 64% representing organizations with annual revenue of more than $1 billion.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.