KPMG will be the first Big Four accounting firm to offer legal services in the US
The Arizona Supreme Court has greenlit KPMG’s bid to launch a law firm in the state, making it the first Big Four accounting firm to offer legal services in the US.
The court’s approval for the establishment of KPMG Law US was secured on Thursday, Reuters reported. The independently managed subsidiary has been licenced as an alternative legal business, and it will collaborate with the accounting arm on the provision of legal and consulting services
However, KPMG Law US cannot take clients for whom KPMG LLP or its network firms conduct financial audits, in line with an approval condition.
In a statement published by Reuters, the court said its ruling “places Arizona's ABS program in the national and global spotlight as a groundbreaking approach to providing legal services.” Last month, a court committee had recommended approval.
Arizona was the first US state to eliminate rules preventing non-lawyers from securing an economic interest in law firms; if approved by the court, non-lawyers can be law firm co-owners. Utah followed suit, but states like California have hesitated on the grounds that ethical abuses could be committed by providers who are not held to the professional rules governing lawyers.
Those who back Arizona’s move said that restricting legal practice, law firm ownership, and legal fee sharing to just lawyers drives up the price of legal advice, limits market innovation, and hampers access to justice.
A KPMG spokesperson told Reuters last month that KPMG Law US “will be governed by the same high ethical standards that apply to other law firms.” The subsidiary will concentrate on providing technology-enabled legal services like legal operations consulting and volume contracting.
KPMG US tax practice leader Christian Athanasoulas suggested that the firm could provide legal services beyond Arizona by having its lawyers act as co-counsel with lawyers in different states.
