FINANCIAL SERVICES COMMISSION PUBLISHES ACTION PLAN
The Financial Services Commission is pleased to announce that following extensive consultation with the industry and other stakeholders it is today publishing its Action Plan 2012-16 outlining its core areas of activity for the next five years, today, 25 Apr 2012.
The Action Plan draws together and addresses the recommendations contained in recent reports from the International Monetary Fund; the Toronto Centre; and the Caribbean Financial Action Task Force, and was given renewed impetus following the closure of TCI Bank in April 2010. These reports, plus earlier work performed in the 2009 Foot Review of the Opportunities and Challenges facing the British Crown Dependencies and Overseas Territories, highlighted areas of the regulatory and supervisory regimes in the TCI that required development, and were used as the basis in drawing up the Action Plan, which will be made available on the FSC’s web site and be periodically updated.
His Excellency Governor Ric Todd said: “I congratulate the FSC on this initiative. The publication of an Action Plan is an important step in demonstrating the commitment of the Financial Services Commission, and by extension the Interim Administration, to the future of financial services in the Turks and Caicos Islands. The Action Plan charts a positive way forward for the sector and describes the steps that will be taken to ensure the TCI keeps pace with the latest international regulatory standards. I am sure the private sector will rise to the challenges ahead and work with the FSC to ensure that TCI’s reputation as a financial services centre is enhanced.”
Errol Allen, Chairman of the FSC, added: “The Action Plan is the culmination of a great deal of work by the FSC and its partners in the financial services sector, and represents a summary of our objectives for the next five years. Completion of these objectives will provide the TCI with an extremely robust and practical legislative and regulatory framework designed to support the industry into the future.”
FSC Action Plan: 2012-2016
Introduction
The Financial Services Commission (FSC) was established in 2001 as an independent statutory body with responsibility for the administration of the regulatory framework for all financial services in the territory.
As a result of the Caribbean Financial Action Task Force (CFATF) Report in 2008 and the Foot Review in 2009 it was recognised that there was a need for significant institutional strengthening if the FSC was to meet international regulatory standards.
The closure of TCIB in April 2010 resulted in several focused reviews of the FSC; firstly, the Non-Executive Directors Report on the FSC’s supervision of TCIB and secondly, the Toronto Centre Report of the Assessment of Supervisory Methodology and Practices for Banks. In addition the IMF conducted two missions in March 2011 (Exploring Depositor Protection Options) and September 2011 (Establishing a Special Bank Resolution Regime and Deposit Insurance Follow-Up).
The Action Plan that follows is designed to address the recommendations contained in the above reports. The Plan organised by regulatory departments viz Banks and Trusts, Insurance (Domestic and International) and Securities (Mutual Funds and Investment Dealers) under the headings of “the Supervisory Methodology, the Legal Framework and the Professional Resources”. The final section deals with the overall administration of the Commission itself.
Banks & Trusts Department
Supervisory Methodology
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Supervisory Manual- The existing manual requires review and updating. Current best practices utilised by the FSC will be documented and areas such as “Problem Bank Resolution and Crisis Management” will be added.
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Regulatory Reporting- The current suite of statistical returns for banks requires revision. For example, there is a need to provide for more detailed reporting on Liquidity, in particular mis-matched positions, to clearly define the instruments that constitute liquid assets as well as to specifically provide for the banks reporting of their compliance or non-compliance with the prevailing regulatory minimum Liquidity Ratios.
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Secondary Source Reporting- There is a need to institutionalise the use by the FSC of the banks’ existing internal information sources. In addition to the annual audited financial statements, the FSC will require the submission of reports by the banks’ Internal Auditors, Compliance Officers etc. to facilitate its own off-site surveillance processes.
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Guidelines- The FSC will complete its framework of guidelines to the industry covering such issues as Licensing, Capital, Liquidity, Loan Classification, Loan Loss Provisioning, Interest Non-Accrual etc.
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Market Information- The FSC will produce a Quarterly Statistical Report containing the consolidated figures for the banking industry, based on the regulatory returns, for website publication.
Legal Framework
The present legal framework for banking in the territory is out dated. The FSC proposes to have the following new legislation enacted:
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Financial Services Commission Ordinance
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Banking Ordinance
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Bank Insolvency Ordinance
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Deposit Insurance Ordinance
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Trustees Ordinance
Professional Resources
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Recruitment- The FSC expects to seek to expand its existing Banking & Trust team through the recruitment of additional experienced bank and trust regulators.
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Training- The FSC is applying for membership in the two premier regional institutions that provide professional training in supervision and regulation viz ASBA (The Association of Supervisors of Banks of the Americas) and CEMLA ( The Association of Caribbean and Latin American Central Banks) to allow its staff to have access to the most advanced training resources in the region. In addition, the FSC will incorporate the completion of online training programs into the performance evaluation of entry level staff members.
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External Expertise- The FSC will continue to utilize external experts to bolster its regulatory processes, particularly in such areas as the preparation of industry guidelines and the conduct of its on-site examination program.
Insurance Department
1. Domestic
Supervisory Methodology
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Supervisory Manual- The FSC does not presently have a manual for supervision of the insurance sector. It is proposed that a manual based on the International Association of Insurance Supervisors (IAIS) core principles will be commissioned to document procedures for both off-site surveillance and on-site examinations.
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Regulatory Reporting- In 2010 the FSC introduced quarterly reporting for domestic insurers however such returns remain rudimentary. It is proposed to utilise the suite of returns developed by CARTAC for the Caribbean Association of Insurance Regulators (CAIR) to improve the comprehensiveness of the data collection effort.
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Secondary Source Reporting- In addition to the submission of the annual audited financial statements, the FSC will institutionalise the submission of reports by Actuaries, Internal Auditors and Compliance Officers etc. in order to enhance its off-site surveillance methodology.
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Guidelines- The FSC will commence the development of a framework of industry guidelines for domestic insurers dealing with such issues as Licensing, Capital, Restricted Deposits, Solvency, Eligible Assets etc.
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Market Information- - The FSC will produce a Quarterly Statistical Report containing the consolidated figures for the domestic insurance industry, based on the regulatory returns, for website publication.
Legal Framework
The present legal framework for domestic insurers proved inadequate when faced with the failure of CLICO and British American in 2009. In addition to developing a network of Memoranda of Understanding with regional insurance regulators it is therefore proposed to enact a new modern domestic insurance ordinance.
Professional Resources
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Recruitment- The FSC proposes to expand its regulatory team with the recruitment of additional insurance analysts and senior insurance regulators.
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Training- The FSC will utilise the IAIS online training modules for on-going staff training and the Toronto Centre Leadership Program for more advanced technical education.
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External Expertise- The FSC will continue to utilise external expertise to ensure that the new laws and regulations are IAIS compliant as well as to provide guidance when it commences the introduction of on-site examinations for insurers.
2. International
Supervisory Methodology
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Supervisory Manual-There is a need to clearly document the current regulatory practices for Captive insurers and PORCS. In particular there is a need for greater clarity in the definitions for each category of insurer and reinsurer.
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Regulatory Reporting- There is a need to ensure that each insurance manager is providing current information on international insurers for which they are responsible and it is proposed to introduce quarterly reporting for insurance managers.
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Guidelines- The FSC will issue industry guidelines dealing with such issues as the Role of the Insurance Manager, Restricted Deposits etc.
Legal Framework
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The industry has requested amendments to the existing ordinance in connection with the definitions of PORCS.
Professional Resources
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Recruitment- The FSC expects to recruit additional insurance administrators.
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Training- The FSC will utilise the online options available (IAIS) as well as the annual educational offerings of the Offshore Group of Insurance Supervisors (OGIS).
Securities Department
Supervisory Methodology
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Supervisory Manual- The FSC does not presently have a manual governing the supervision of the securities sector. It is proposed that a manual based on the IOSCO core principles will be commissioned to cover both on and off-site supervision procedures.
Legal Framework
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The FSC will seek amendments to the ordinance to facilitate the licensing of Investment Advisors.
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The FSC will seek amendments to the securities ordinances to bring them in line with IOSCO recommendations.
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The FSC will seek membership in IOSCO.
Professional Resources
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Training- The FSC will utilise the annual educational offerings of IOSCO to upgrade the skills of existing staff in the department.
The Commission
The Commission has completed Phase 1 of its relocation exercise with the transfer of the Banks & Trusts department and the Finance & Administration department to the Providenciales offices. It has now commenced Phase 2, the relocation of the Insurance department. To date the Domestic Insurance Unit has been transferred while the International Insurance Unit’s transfer is awaiting the acquisition of additional office space in Caribbean Place.
Appendix I: FSC Project Priority List
|
|
|
|
|
Project |
Priority High/Medium/Low |
Estimated Completion Date |
|
|
|
|
|
Banks: risk-based framework, incl Manual and guidance |
H |
Dec 2012 |
|
Banks: regulatory reports update |
H |
Dec. 2012 |
|
Banks internal & external audit |
M |
June 2013 |
|
Market information – banks & insurers |
M |
December 2013 |
|
FSC Ordinance amendments |
M |
June 2013 |
|
Banking Ordinance - new |
M |
June 2013 |
|
Bank insolvency and resolution |
M |
Dec. 2013 |
|
Deposit Insurance |
M |
June 2014 |
|
Private Trustee regime |
M |
Dec. 2013 |
|
Trustee Licensing Ord - new |
L |
June 2015 |
|
Domestic Insurers – manual and guidance |
M |
Dec. 2013 |
|
Domestic insurers – supervisory reporting |
M |
June 2013 |
|
Insurance Ordinance (domestic) |
H |
June 2012 |
|
International Insurers – manual, guidance and reporting |
M |
Dec. 2013 |
|
International Insurers – new Ordinance |
L |
Dec. 2015 |
|
Investment Business licensing amendments |
M |
Dec. 2014 |
|
Investment Business manual and guidance |
M |
Dec. 2014 |
|
Investment Business – new legislation |
L |
June 2016 |
|
|
|
|
Caribbean Tourism Industry decision makers to debate investment opportunities at hotel & tourism investment conference
Some of the Caribbean tourism industry’s top decision makers will share their perspectives on investment opportunities in the region at the 16th Annual Caribbean Hotel and Tourism Investment Conference (CHTIC), which gets underway here in earnest tomorrow with an official opening ceremony.
Four members of the Caribbean Tourism Organization (CTO)’s Council of Ministers and Commissioners of Tourism – the highest decision making body of the region’s tourism development agency – will help set the stage for discussion on challenges facing the sector, as well as the potential for development.
The CTO chairman, Hon Ricky Skerritt, who is also the minister of tourism and international transport for St. Kitts and Nevis, will be part of a panel discussing the Caribbean on the world tourism stage. The presenters, including a corporate finance expert and a tourism researcher, will seek to provide tools and vital data to help frame the discussion during the conference.
They will also identify opportunities for tourism development in the Caribbean.
The 90-minute session dubbed, Setting the Scene: Challenges, Potential and Opportunities – The Caribbean on the World Tourism Stage, will be followed almost immediately by a session on public and private sector partnerships. This session will feature Hon. Karine Roy-Camille, the president of the Martinique Tourism Authority; Hon. John Maginley, Antigua & Barbuda’s minister of tourism and civil aviation; and Hon. Vincent Vanderpool-Wallace, the minister of tourism and civil aviation of The Bahamas.
They will share their vision of investment opportunities in the region and the policies that are required to encourage expansion.
Both sessions will take place on Wednesday April 25 and are among the highlights of the 24- to 26 April conference, which is being held organized by the Caribbean Hotel & Tourism Association (CHTA) and the CTO.
Venezuela denies rumors Chavez died in Cuba
Officials in President Hugo Chavez’s government denied rumors that the leftist leader may have died while undergoing cancer treatment in Cuba six months ahead of an election in South America’s top oil exporter.
In the nine days since he left for Havana to have two final radiation sessions for an undisclosed cancer, Chavez has only addressed Venezuelans by short messages on Twitter to cheer supporters and hail the advances of his socialist “revolution.”
His unusually long silence – during previous trips to Cuba the verbose Chavez has made phone calls to state television – has stirred speculation about his health and doubts over his condition as he campaigns for re-election in an October 7 vote.
In the past, Havana published pictures and video of him meeting his mentor, former Cuba leader Fidel Castro. There have been no images released from this visit, so far.
Opposition candidate Henrique Capriles leapt to the attack and complained that Chavez was running the country remotely by Twitter from a hospital on the communist-led Caribbean island.
Chavez’s political ally and president of the National Assembly legislature Diosdado Cabello dismissed the rumors in a tweet: “The truth is that these embittered people don’t learn. They’ve been saying for days that the Comandante died.”
“The only thing that is lifeless here is that loser,” Cabello said, referring to Capriles, the opposition’s best hope for defeating Chavez and ending his 13 years in power.
Cabello said on Sunday that the president was recovering and would return this week to Venezuela, where he is expected to sign a new labor law that shortens the work week and extends workers’ benefits and is due to go into effect on May 1.
Even opposition journalist Nelson Bocaranda, who has often broken news on Chavez’s treatment in the absence of official details from the government, helped to cast doubt on the rumors.
Bocaranda tweeted that the 57-year-old leader watched the Barcelona-Real Madrid soccer game on Saturday with his daughters in Havana.
Venezuelan government officials insist Chavez is fully in touch and capable of governing the country from Cuba.
Science and Technology Minister Jorge Arreaza said on Twitter that he and Foreign Minister Nicolas Maduro worked with Chavez on Sunday and the president approved various projects.
‘GOVERNING BY TWITTER’
Capriles, a youthful state governor who is the opposition’s “unity candidate” to face Chavez, sharply criticized the all-dominant leader for not doing his job properly.
“Governing by Twitter, approving laws by Twitter without consulting anybody, is an insult to our people. The country’s problems cannot be resolved by Twitter,” Capriles said.
Before leaving for Cuba on April 14, Chavez acknowledged that radiation therapy was physically tiring and he skipped the Summit of the Americas in Colombia that weekend on the advice of his doctors.
Chavez’s opponents have criticized him for keeping the country in the dark about the extent of his illness, raising suspicions that his cancer may have spread from an initial baseball-sized tumor that was removed from his pelvis.
Despite his cancer, Chavez is seeking a new six-year term at an election that is shaping up to be the toughest political fight of his career due to his ill health and a serious opposition challenge.
His government faces potentially embarrassing revelations about links to drug trafficking from a former Supreme Court justice who fled the country and has reportedly become a U.S. Drug Enforcement Administration informant.
Chavez remains very popular among poorer Venezuelans who have benefited from his social programs, which redistribute some of the country’s vast oil wealth.
Almost all recent opinion polls have given Chavez a comfortable double-digit lead over Capriles, and his frequent trips to Cuba for treatment appear not to have changed that.
A survey released on Monday by local pollster Hinterlaces showed 53 percent of Venezuelan voters planning to back Chavez in October, versus 34 percent for Capriles, a one-percentage point gain for the president since a similar poll last month.
“Although President Chavez is not present in the media, his illness is the talk of the nation,” said Hinterlaces director Oscar Schemel, who added that emotional factors are working in Chavez’s favor in the run-up to the election.
Antigua Observer
St Vincent PM admitted to hospital in Barbados
The prime minister of St Vincent and the Grenadines (SVG), Dr Ralph Gonsalves, was admitted to the Queen Elizabeth Hospital in Barbados at the weekend after complaining of feeling unwell.
Investigations and tests conducted by medical staff at the hospital disclosed that there seemed to be a focus of infection somewhere, which was manifested as a persistent fever, among other symptoms. It was subsequently discovered that there was a skin infection resulting in the formation of an abscess. The abscess has been drained and other necessary treatment initiated.
“Since then the PM is feeling much better and on the road to a speedy recovery. He is overly anxious to be out of the hospital and to continue his duties, but we are all insisting that he uses the opportunity to get some well needed rest,” Dr Douglas Slater, SVG minister of foreign affairs, said in a statement.
“We wish to thank all of the many persons who have called and otherwise expressed their concerns, prayers and best wishes for his speedy recovery. The PM has asked to convey his gratitude and appreciation to all Vincentians and others for their demonstration and expressions of support and goodwill. He especially asked to express thanks to all for the prayers offered on his behalf. We will follow his progress closely and report accordingly as deemed necessary,” Slater added.
Gonsalves was in Barbados en route to the Middle East as part of an official tour.
By Caribbean News Now contributor
Cayman Islands premier facing three police investigations
A spokesman for the Royal Cayman Islands Police Service (RCIPS) confirmed on Saturday that Cayman Islands premier McKeeva Bush is now the subject of three separate police investigations.
According to police, one of the investigations involves allegations of financial irregularities in relation to a land deal. In addition, a further allegation of financial irregularities has been made, which is entirely separate from the first investigation.
“Finally, allegations have been made in relation to the involvement of the premier in the periphery of a recent incident where a quantity of explosives were imported to the Cayman Islands without the necessary permit,” the police spokesperson said.
“All three of these investigations are actively ongoing. The governor and the FCO [Foreign and Commonwealth Office] are being kept fully updated,” the spokesperson added, concluding that “It would be inappropriate for the RCIPS to make any further comment in relation to any of the allegations made, or the status of the investigations, at this time.”
The first of the three investigations was confirmed by Governor Duncan Taylor in July 2011, when he acknowledged that the investigation in question centred on a letter said to be written by Bush in 2004, when he was then Leader of Government Business.
The letter to developer Stan Thomas, written on Windsor Development Corporation letterhead, and apparently faxed from Bush’s ministry in October 2004, asked for a balance of $350,000 to be sent to the corporation’s account as a result of Bush having “ensured that all of the proposed re-zoning issues” had been approved by Cabinet.
Windsor Development Corporation is reportedly owned by Bush’s wife, although according to the official register of interests he is a signatory on the corporation’s bank account.
At the time, land purchased by Thomas was the subject of a zoning application. It was rezoned in July 2004 by the Legislative Assembly after Cabinet approved a change in the territory’s development map.
However, at a press briefing on Friday, attended by Britain’s Minister for the Overseas Territories Henry Bellingham, who was on his first visit to the Cayman Islands, local media workers were taken by surprise by Governor Taylor’s admission of a second such investigation in response to questions about the first enquiry.
Neither Bellingham nor Taylor would comment further and the governor said it was up to the police commissioner to take the investigation forward and that at some point it would be up to the director of public prosecutions to take the matter any further than that. He then revealed that there was another hitherto undisclosed investigation in relation to Bush.
No details of this second investigation were given but Bellingham said he was confident of the independence of the police and that they were handling the investigations properly.
He added that it was important to keep at arm’s length from the investigations but he was being updated on the progress.
“I can say that there is a further investigation, a second investigation involving the premier but, as the minister said, it is not appropriate for me to comment on it in any detail,” Taylor stated, adding it was for the police commissioner to comment.
Then on Saturday came the police announcement of a third investigation related to explosives that were apparently imported into the Cayman Islands without the necessary permit.
Earlier, on Thursday in a broadcast on local radio in response to opposition calls for him to reveal the details of the police investigation against him, Bush stated that he was aware of “none”.
On Saturday morning, his press secretary stated that the premier had no comment yet, as he was still trying “to determine what the governor was referring to” when he made the second disclosure at the press briefing on Friday.
These revelations in the Cayman Islands come amidst ongoing investigations in another British overseas territory, the Turks and Caicos Islands (TCI), into allegations of widespread government corruption that have resulted in a number of former cabinet ministers being charged with various offences of bribery, fraud and money laundering.
Former TCI premier Michael Misick is currently a fugitive from justice following the issue of an arrest warrant and an Interpol ‘Red Notice’.
By Caribbean News Now contributor
Iran Says Cyberattack on Oil Industry Had Little Impact
Iran says a suspected cyberattack on its state-run oil industry had little impact on operations thanks to rapid measures taken by experts to limit the spread of the virus.
Iranian state news agency IRNA quotes an Oil Ministry official as saying there was “no damage” to the ministry's computer data from the virus, which authorities first detected on Sunday. Deputy Minister for Oil and Civil Defense Hamdollah Mohammadnejad also said Iranian oil production facilities have continued to operate without interruption. But he said it will take several days to investigate and resolve the issue.
Iranian authorities say they responded to the cyberattack by switching off Internet access at Oil Ministry offices and facilities, including the country's main terminal on Kharg Island, which handles three-quarters of Iranian oil exports.
Iran has periodically reported cyberattacks on its nuclear and industrial sectors.
The head of a U.S.-based energy research company told VOA that the latest digital assault on the Iranian oil sector is likely to have only a minimal impact on the country's oil production. International Petroleum Enterprises president Hossein Ebneyousef says Iranian oil terminals are “very low-tech” and have operated for decades without the Internet. For example, he says they use gravity rather than pumps to transfer crude from storage tanks to ships.
Ebneyousef says Iranian oil terminal workers also have other means to communicate when email systems are down, including telephones.
He says Iran has improved its response to cyberattacks since 2010, when its nuclear facilities were affected by the Stuxnet computer worm. Iranian authorities have accused the United States and Israel of trying to sabotage Iran's nuclear program through methods such as cyberattacks. Both nations accuse Iran of secretly trying to develop nuclear weapons and refuse to rule out any options for preventing such an outcome.
Iran says its nuclear program is peaceful.
Apple doubles quarterly profits to $11.6bn (£7.2bn)
Apple has reported its profits almost doubled in the first three months of the year.
Apple said its net profit came in at $11.6bn (£7.2bn), up from $6bn in the same period last year and much better than had been expected.
The technology giant sold 35 million iPhones in the quarter, which was also almost double the level from a year ago.
Apple shares rose more than 7% to $601 in after-hours trading.
"Apple once again surprises on the upside despite expectations that iPhone sales would lag," said Michael Yoshikami, chief executive of YCMNet Advisors.
"Clearly iPad results are driving results, as well as international sales. This is consistent with Apple continuing to capture market share against Android."
The strong results followed a 13% fall in its share price in the past few weeks.
"Apple had a blowout quarter," said JJ Kinahan, chief derivatives strategist at TD Ameritrade.
"There were already high expectations and they blew the expectations away."
Some analysts had predicted that iPhone sales would be weak, suggesting that phone companies had reined in their sales.
"We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," said Apple chief executive Tim Cook.
"The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver."
Government hits annual borrowing target
The UK government borrowed more than expected in March, official figures have shown, but still met its borrowing target for the year.
Public sector net borrowing, excluding interventions such as bank bail-outs, came in at £18.2bn in March, the Office for National Statistics (ONS) said.
However, previous months' borrowing was revised down, meaning the government met its target of £126bn for the year.
On Wednesday, figures will show how the economy performed in the first quarter.
They will show whether or not the UK economy is in recession, defined as two consecutive quarters of contraction.
The economy shrank by 0.3% in the last quarter of 2011.
The annual borrowing figure marked a reduction of almost £11bn on the £136.8bn borrowed in 2010-11.
Tax increases, such as the rise in VAT from 17.5% to 20%, and government spending cuts were the main reasons behind the reduction over the year.
The government is aiming to eliminate the deficit by 2016-17. A Treasury spokesman said: "This shows that the government's plan to reduce the budget deficit is working."
But Labour Treasury spokeswoman Rachel Reeves said: "These figures show that last year George Osborne borrowed £9bn more than he planned to at the time of his spending review."
Most analysts had expected borrowing of about £16bn in March.
But the higher figure of £18.2bn was more than offset by a £3bn downward revision to February's data.
Borrowing for the period from April 2011 to January 2012 was also revised up by £800m.
The ONS said in its latest release that most of the revisions were driven by changes to central government data.
This included a £1.1bn upward revision to income tax by HM Revenue and Customs, consisting of repayments and recoveries relating to the introduction of a new PAYE computer system in June 2009.
Net debt, excluding the effect of government interventions, topped £1 trillion, the equivalent of 66% of gross domestic product.
Adam Chester, UK economist at Lloyds, told the BBC there would be "a small sigh of relief" at the Treasury.
But he added that the longer-term worry was that if market sentiment changed, the UK could see a "vicious" upward change in government bond yields which could increase the cost of borrowing.
These figures were backward-looking, he said, whereas the market was more concerned with how the economy performed in the future.
Tom Vosa from National Australia Bank agreed.
"The issue going forward is if growth remains weaker, which we believe it will do, than the OBR (Office for Budget Responsibility) forecasts, then how much further progress will the government make in consolidating finances?" he said.
BP oil spill: First criminal charges filed in US
The US justice department has filed the first criminal charges linked to the Deepwater Horizon oil spill.
A former BP engineer was arrested on charges of intentionally destroying evidence.
Kurt Mix of Katy, Texas, faces two counts of obstruction of justice.
He is accused of trying to delete text messages between himself and a supervisor, in October 2010, containing details about how attempts to cap the leaking well were going.
In a sworn affidavit, FBI special agent Barbara O'Donnell said Mr Mix had "deleted numerous electronic records relating to the Deepwater Horizon disaster response, including records concerning the amount of oil potentially flowing from the well, after being repeatedly informed of his obligation to maintain such records".
Mr Mix, 50, was involved in some of BP's attempts to cap the well, including the unsuccessful Top Kill efforts in May 2010.
Prosecutors say he deleted messages that indicated Top Kill was failing at a time when BP officials were saying publicly that it was broadly proceeding according to plan.
Mr Mix resigned from BP earlier in 2012.
In a statement, BP said it "had clear policies requiring preservation of evidence in this case and has undertaken substantial and ongoing efforts to preserve evidence".
The justice department said Mr Mix would make his first appearance in a Houston federal court later on Tuesday.
The Deepwater Horizon rig, which had been leased by BP, exploded on 20 April 2010, killing 11 workers and eventually spilling more than 200 million gallons of crude oil.
Google Drive to offer free storage in the cloud
Google has launched a new consumer service offering up to 16TB (terabytes) of storage for photos and other online content.
Dubbed Google Drive, the service goes head to head with rival cloud services such as Dropbox and Microsoft's SkyDrive.
It offers 5GB (gigabytes) of storage for free. People pay on a rising scale for more space.
Experts say that Google is "late" to the market.
16TB of space could hold more than 4,000 two-hour movies coded in 720p high-definition resolution.
Cloud living
"Today, we're introducing Google Drive - a central place where you can create, share, collaborate and keep all of your stuff," said Sundar Pichai, senior vice president of Chrome and Apps in a blog post.
"Whether you're working with a friend on a joint research project, planning a wedding with your fiancé or tracking a budget with roommates, you can do it in Drive."
The service will allow users to upload and access videos, photos, Google Docs, PDFs and other documents.
It can be installed to a Mac or PC or as an app to an Android phone or tablet. Google said that it was working on an app for Apple's mobile operating system, which should be available in the coming weeks.
For blind users, Drive can be accessed with a screen reader.
"Google Drive will hit some competitors very hard and shake up the market," said Hanns Kohler-Kruner from tech research firm Gartner.
"It will also create another stream of more focused and potential ad revenue for Google around the content of personal files on Google Drive."Grand canyon
Google will draw on its search expertise to help differentiate the service.
Users will be able search by keyword and filter by file type, owner or activity. Drive will also recognise text in scanned documents using optical character recognition (OCR) technology.
This would allow someone, for example, to upload a scanned image of an old newspaper clipping and search for a word from the text of the news article.
Google Drive will also use image recognition.
"If you drag and drop photos from your Grand Canyon trip to Drive, the next time you search for Grand Canyon, photos of it will pop up," said Mr Pichai.
The first 5GB of storage comes free.
After that users can choose to upgrade to 25GB for $2.49 (£1.50) a month, 100GB for $4.99 a month, 1TB for $49.99 or 16TB for $799.99.
When users upgrade to a paid account, their Gmail account storage will automatically expand to 25GB.
By contrast, Microsoft offers yearly contracts. It charges $50 for maximum storage of 100GB.
Dropbox offers individual users up to 100GB at a rate of $19.99 per month or $199 per year. It also sells larger amounts to groups with the cost and size determined by how many people share the space.
Facebook?
Cloud services have become hugely popular as people seek to access content from a variety of places and devices.
Richard Edwards, principal analyst at research firm Ovum, said that Google was "very late" to the market but that its move could spur others.
"Facebook doesn't have a cloud service but this may prompt it into an acquisition," he said.
"If Facebook was to buy Dropbox that would be a game-changer."
In anticipation of Google's announcement, rivals updated their own services.
Dropbox now allows users to give non-members access to files via emailed links. Until now it had required both parties to sign up to its service and have shared folders.
Microsoft has also improved its SkyDrive service.
Among other features, it has integrated the drive into Windows Explorer and Apple's Finder so that it works as an extension of the desktop.
It also added capability to access files stored on the drive from an iPad as well as the iPhone and Windows Phone-based handsets.
