Prime Highlights: 

KPMG has received approval from the Arizona Supreme Court to launch KPMG Law US, becoming the first Big Four accounting firm to practice law in the U.S. 

The new law firm will provide legal services in conjunction with KPMG’s existing consulting and tax offerings, leveraging a technology-driven approach. 

Key Background:  

KPMG has received approval from the Arizona Supreme Court to establish a law firm in the state, making it the first of the Big Four accounting firms to be granted permission to practice law in the United States. The newly formed entity, KPMG Law US, will operate as an independently managed subsidiary of the accounting firm. It aims to collaborate with KPMG to offer a combination of legal and consulting services, thereby transforming the legal service delivery model. 

Rema Serafi, Vice Chair of Tax at KPMG LLP, highlighted the firm’s unique position to revolutionize the legal services landscape. The decision is possible due to Arizona’s progressive reforms, which, since 2020, have allowed non-lawyers to hold an economic interest in law firms with court approval. This legislative shift is part of a broader movement to introduce innovations that make legal advice more affordable and accessible, while also addressing the challenges posed by traditional legal market restrictions. While other states, including Utah, have implemented similar reforms, many still maintain strict limitations that prevent non-lawyers from owning law firms or sharing legal fees. 

The approval by Arizona’s Supreme Court follows a recommendation from a committee that reviewed KPMG Law US’s application. As part of the approval, KPMG Law US will be subject to the same ethical standards as other law firms, ensuring its operations are fully aligned with legal profession regulations. However, KPMG Law US will be prohibited from providing legal services to clients for whom KPMG LLP or its affiliates perform financial audits, maintaining a clear separation between legal and audit functions. 

KPMG plans to offer technology-driven legal services through KPMG Law US, including legal operations consulting, volume contracting, and other managed services. This development marks a significant step in the evolution of the legal industry, as more firms explore the integration of legal and business services to drive innovation.