Corporate Services Need Regulation

I refer to the report ("Hong Kong and HSBC under scrutiny as US cracks down on American tax cheats", January 5).

It made reference to an investigation by the US Internal Revenue Service into Sovereign Management and its US-based clients.

We wish to make it clear that the Sovereign Management referred to has no connection whatsoever with Sovereign Trust (Hong Kong) Limited or its associated companies within The Sovereign Group.

The Sovereign Group is fully compliant with the IRS' requirements under the Foreign Account Tax Compliance Act and is not aware of any of its companies being the subject of any investigation.

This article does, however, bring to light the necessity for tightening controls for corporate service providers and trust management companies in Hong Kong.