The Arizona Supreme Court recently made headlines by delaying a crucial decision regarding KPMG’s entry into the legal services industry. KPMG Law US, a subsidiary of the renowned accounting company KPMG, is seeking approval to practice law in Arizona under the state’s alternative business structure program. This program allows nonlawyers to own or invest in law firms, aiming to bring innovation to the legal profession.
The court’s decision to postpone the approval process was based on the need for additional information and clarification on certain aspects of KPMG’s application. This move came after the Arizona Supreme Court’s Committee on Alternative Business Structures had initially recommended approval of KPMG’s application. The committee’s decision was made following a thorough review and questioning of a KPMG representative regarding the firm’s operations and compliance with ethical standards.
KPMG Law US intends to collaborate with staffing agencies and local lawyers to cater to clients in various jurisdictions, expanding its reach beyond Arizona. The firm is set to hire Arizona-licensed lawyers who will provide legal services within the state, focusing on areas that complement KPMG’s existing portfolio and service offerings. While the firm does not plan to offer legal services to audit clients, it aims to capitalize on opportunities with clients currently served by its tax and advisory businesses.
Christian Athanasoulas, a U.S. tax partner and head of tax services at KPMG, shed light on the company’s strategic approach to entering the legal services domain. He emphasized the firm’s commitment to addressing client needs by offering targeted legal services that align with its core competencies. Athanasoulas highlighted KPMG’s significant investment in technology, including artificial intelligence (AI), which is expected to enhance the firm’s efficiency and productivity in delivering legal services.
In a recent interview with Law360, Athanasoulas underscored Arizona’s push for legal innovation and KPMG’s readiness to leverage its technological capabilities to provide high-quality legal services. The firm’s focus on integrating technology into its legal operations reflects a broader trend in the legal industry toward digital transformation and enhanced client service.
As the legal landscape continues to evolve, KPMG’s foray into legal services marks a significant development in the industry. With a strong emphasis on innovation, client-centric solutions, and technological advancement, KPMG Law US is poised to make a notable impact on the legal market, catering to the evolving needs of clients and setting new standards for legal service delivery.
In conclusion, the Arizona Supreme Court’s decision regarding KPMG’s application for legal practice in the state underscores the ongoing transformation and innovation in the legal industry. By combining expertise, technology, and a client-focused approach, KPMG Law US is well-positioned to navigate the complexities of the legal landscape and deliver exceptional legal services to clients across various jurisdictions.
