KPMG is making strides to enhance its legal presence in the United States by leveraging Arizona’s regulatory framework, which provides more flexibility in business structures. The firm, known for its extensive services in accounting, tax, and consulting, is seeking approval from the Arizona Supreme Court to practice as an “alternative business structure.” If granted, this approval would allow a subsidiary of KPMG, known as KPMG Law US, to operate a law practice that spans the nation.
The move represents a significant shift within the landscape of legal services, particularly as it pertains to the role of the Big Four firms, which include KPMG, Deloitte, PricewaterhouseCoopers, and Ernst & Young. Traditionally, these firms have faced restrictions on the extent to which they can offer legal services in jurisdictions like the United States due to regulatory constraints separating legal practice from other professional services. However, Arizona’s decision to permit alternative business structures reflects a growing trend aimed at increasing competition and innovation within the legal field.
A spokesperson for KPMG expressed optimism about the new venture, stating, “Pending approval, this innovation would differentiate KPMG Law US both in the legal and the consulting markets.” The spokesperson highlighted the potential to integrate legal capabilities with managed services, such as contract management and other business processes. This integrated service model seeks to offer a comprehensive suite of solutions to clients, especially those requiring sophisticated legal and business advisory services.
The developments in Arizona could potentially pave the way for other states to reassess their regulations and open the door for more non-traditional legal service providers to enter the market. This initiative marks KPMG as the first of the Big Four to take advantage of this opportunity in Arizona. The broader implications for the legal market could be profound, as it may usher in new competitors and encourage traditional law firms to innovate in order to maintain their competitive edge.
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