State Approves First Big Four Legal Services Provider in United States

• Pages: 29-30
• Date: 01 April 2025
• Published date: 01 April 2025
• Author: Daniel S. Wittenberg
• Subject Matter: Civil Law

PMG, one of the Big Four accounting rms, has

taken a signicant step in expanding its footprint in

the legal services industry by launching a legal practice

in Arizona. This move signals a transformative shift

in the legal landscape, particularly in how tradi-

tional law rms compete with multidisciplinary service pro-

viders. The implications of KPMG’s expansion extend to law

rms, corporate clients, and the broader legal ecosystem.

Background

In August 2020, the Arizona Supreme Court approved changes

to the regulation of the practice of law including elimination

of a rule that bars nonlawyer ownership of law rms. This

included striking Arizona Ethics Rule 5.4, which had long

prohibited nonlawyers from owning stakes in law rms. The

Arizona Supreme Court’s order also outlined a new form of

law practice, referred to as an “alternative business structure”

(ABS), which permits fee sharing between lawyers and non-

lawyers. The order also approved Court Rule 31.1(c), which

reads that “[a]n entity that includes nonlawyers who have

an economic or decision-making authority … may employ,

associate with, or engage a lawyer or lawyers to provide legal

services, to third parties….” In creating the ABS, the Arizona

Supreme Court noted that the modications to the rules could

“transform the public’s access to legal services” and should

both protect the public and increase access to legal services.

Since taking effect in 2021, Arizona’s ABS program has pri-

marily attracted legal technology rms and alternative legal

service providers. KPMG’s approval is different. Its applica-

tion for an ABS license was approved in February 2025, allow-

ing it to operate KPMG Law US as an independently managed

subsidiary of KPMG LLP. The approval, however, does include

a condition prohibiting KPMG Law from performing legal

services for audit clients.

In a company statement, Rema Sera, New York, NY, Vice

Chair—Tax for KPMG LLP, said, “KPMG Law US is uniquely

positioned to transform the delivery of legal services.” Sera

further stated that “[b]y combining cutting-edge articial intel-

ligence and advanced technology solutions with legal services,

we are proud to be a rst mover with this capability….”

The Impact on L aw Firms

KPMG’s entry into the legal services market presents both

challenges and opportunities for traditional law rms.

• Increased Competition: Law rms must now com-

pete with a well-capitalized global entity capable of

offering integrated solutions that extend beyond con-

ventional legal services. This competition could lead to

pricing pressures and force law rms to rethink their

service models.

• Strategic Partnerships: Some law rms may seek stra-

tegic alliances with consulting and advisory rms to

remain competitive. These partnerships could take the

form of joint ventures, alternative business structures,

or collaboration on multidisciplinary projects.

• Innovation and Technology Adoption: The presence of

a global player like KPMG may accelerate innovation

within law rms. To maintain a competitive edge, rms

State Approves First Big Four Legal

Services Provider in United States

By Daniel S. Witt enberg, Litigation News Associat e Editor

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