KPMG's bid to deliver legal services delayed as top Arizona court seeks more information
The Arizona Supreme Court on Tuesday pushed back a decision on whether to allow a new subsidiary of accounting company KPMG to practice law in the state. (Photo from Shutterstock)
The Arizona Supreme Court on Tuesday pushed back a decision on whether to allow a new subsidiary of accounting company KPMG to practice law in the state.
KPMG Law US is seeking to operate through Arizona’s alternative business structure program, which allows nonlawyers to own or invest in law firms. The state supreme court has requested “additional information or clarification on aspects of the application” before reaching a decision, a court spokesperson told Bloomberg Law and Law.com.
The Arizona Supreme Court’s Committee on Alternative Business Structures had unanimously recommended approval of KPMG’s application earlier this month. The committee acted after a KPMG representative answered questions, including a query about how the firm would provide legal services in other states without violating ethics rules.
The new firm plans to work with staffing agencies and local lawyers to serve clients in other jurisdictions, KPMG compliance lawyer David Rizzo told the committee.
KPMG, which has more than 3,750 employees, already has legal practices in more than 80 jurisdictions.
Law360 recently spoke with Christian Athanasoulas, a U.S. tax partner and head of tax services at KPMG, about the accounting company’s plans.
KPMG Law US plans to hire Arizona-licensed lawyers who will deliver legal services in the state. The new firm does not intend to offer legal services to audit clients but will seek opportunities with clients served by its tax and advisory businesses.
“We’ve recognized that there is a need for services related to legal that are very much adjacent to the services we deliver today,” Athanasoulas said. “That’s not a full portfolio of legal services but rather a handful of pinpointed legal services that address client pain points and are adjacent to our existing portfolio and service offerings.”
Athanasoulas noted that Arizona wants to bring innovation to the legal profession. KPMG has already “invested incredible resources in technology, including AI,” and that investment could help KPMG Law US deliver “a better work product in a faster, more efficient way,” he said.
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