Money market funds are big business in France, accounting for more than half of the fund industry’s assets under management. Most of the money is in low risk funds investing in short duration instruments. But a separate sector, known as dynamic money market funds and offering higher yields, was growing fast – until the credit squeeze hit last summer.

Now, the days of dynamic money market funds in France look to be numbered as investors continue to pull out and the local regulator looks to create a single category for money market funds.