5 To address some of the problems facing DB plans, the federal and Quebec governments have introduced steps designed to help plan sponsors meet the solvency funding test by obtaining letters of credit. Other jurisdictions are also looking into these issues, including the Ontario Government, which has just launched an expert commission to review pension laws.
It was the realisation that the structural force at work behind persistently abundant liquidity was becoming increasingly connected with final spending and pricing decisions. As I said at the start, the complexity of the analysis required to predict our moves has not materially impeded market participants in responding meaningfully to incoming data.