KPMG’s Arizona Law Firm – A Paradigm Shift in Law Business

John is joined by Christian Athanasoulas, KPMG’s Global Head of International Tax and M&A Tax and U.S. Tax Practice Leader – Services.  They discuss the groundbreaking shift in the U.S. legal industry arising from Arizona’s decision to allow non-lawyers to have ownership interests in law firms.  This move aligns the U.S. with countries like the U.K. and Australia, where non-lawyers have been permitted to own law firms for years.  KPMG has successfully operated legal practices in over 80 countries, but U.S. regulations previously prevented it from offering legal services alongside its consulting, tax, and advisory work.  Arizona’s new rules allow KPMG to offer the non-legal services it typically offers clients together with related legal services performed by the new law firm.  Previously, KPMG’s clients would have to retain law firms with no formal ties to KPMG for those services.  Christian led the effort to establish KPMG Law US, a wholly owned Arizona law firm under the KPMG umbrella.  KPMG Law US is an independent LLC with Arizona-licensed lawyers and a compliance officer to ensure adherence to legal ethics rules.  Although owned by KPMG, the law firm maintains autonomy.  It can assist clients with legal matters such as contract integration and regulatory compliance.  KPMG Law US leverages its parent company’s technological advancements, including AI-driven contract analysis and process automation, to improve efficiency in the provision of legal services.  The new law firm will not engage in litigation.  For matters outside of Arizona, it will co-counsel with lawyers admitted in the appropriate jurisdiction.  While Arizona is currently the only state permitting non-lawyer ownership of law firms, other states are exploring the possibility of passing similar laws.  The creation of KPMG Law US could signal broader changes in the legal profession, potentially reshaping traditional law firm structures.

Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi