European Commission proposals to change how money market funds are regulated have left treasurers facing the prospect of funds with a fixed net asset value becoming a thing of the past.

Most treasurers in the UK prefer to use funds with a fixed, or constant, net asset value - or CNAV - as do their counterparts in the Netherlands, Ireland and Switzerland. However, European policymakers are concerned about the way that CNAV funds are settled, since this happens on the day that an investor asks, which allows the investor to use money market funds to hold the balance as cash in brokerage accounts.