The issue foremost on my mind is the volatility of the stress test results. One concern frequently expressed is that the results of the supervisory stress test can lead to capital requirements that change significantly from year to year, which limits a firm's ability to manage its capital effectively.
Another issue of interest with regard to the Stock Market … Although prudential guidelines require that direct investments in equities by pension funds should not exceed 50 per cent of their portfolios, many pension plans find themselves in excess of this limit as a result of the strong performance of the stock market in recent years.