KPMG advances in bid to deliver legal services in Arizona
KPMG US has moved one step closer to forming the Big Four’s first law firm in the United States. (Photo from Shutterstock)
KPMG US has moved one step closer to forming the Big Four’s first law firm in the United States.
The Arizona Supreme Court’s Committee on Alternative Business Structures unanimously recommended Tuesday that KPMG Law US, a new subsidiary of the accounting company, receive a license to deliver legal services in the state, Law.com reports.
According to Bloomberg Law, which also has coverage, the Arizona Supreme Court has the final say. It will decide Jan. 28 whether to grant or deny the application for KPMG Law US. It could also ask for more information before making a decision.
KPMG tax partner Tom Greenaway said during the hearing the company has “been studying Arizona’s structure for years” and is excited for new opportunities, according to Law.com. He also said “we really think that we can bring innovation and a complete set of integrated legal solutions to our clients here in Arizona.”
KPMG Law US is applying to operate as an alternative business structure in Arizona under state ethics rules that permit nonlawyers to own or invest in firms. The state has already approved more than 100 alternative business structures, but they “have largely been granted to firms practicing personal injury, mass torts and products liability law, as well as trusts, estates and probate law,” according to previous reporting by Law.com.
KPMG Law already offers legal services globally in more than 80 jurisdictions and has more than 3,750 employees. But bans on nonlawyer ownership of firms in most states have prevented companies such as KPMG from offering legal advice with its law-related services in the United States.
When asked how KPMG will avoid violating other states’ professional ethics rules, KPMG compliance lawyer David Rizzo said the company will work with staffing agencies and local counsel to serve clients in other jurisdictions, Bloomberg Law reports.
“It’s going to be my job to ensure that Arizona lawyers are not holding themselves out as lawyers in other jurisdictions,” said Rizzo, according to Bloomberg Law. “We are aware of the kind of trouble that sloppy operations can get us in.”
