What's Happening?
KPMG LLP has appointed Christian Athanasoulas as the new head of its US Legal Services division. Athanasoulas, who has been with KPMG for over 25 years, is tasked with integrating the firm's legal services with its corporate advisory offerings. This move
comes as KPMG expands its legal services in the US, following its approval to operate a law firm in Arizona. The firm aims to address past client complaints about non-holistic service offerings by creating a new business unit to better connect legal services with other offerings. Athanasoulas faces the challenge of growing these services amidst pushback against non-lawyer-owned law firms and competition from traditional lawyer-owned firms.
Why It's Important?
The appointment of Athanasoulas and the expansion of KPMG's legal services highlight a significant shift in the US legal market, where non-traditional law firms are gaining ground. This development could disrupt the dominance of traditional lawyer-owned firms, as KPMG leverages its extensive resources, corporate clientele, and technological investments. The move also reflects broader trends in the legal industry towards integrating legal services with other business advisory services, potentially offering more comprehensive solutions to clients. However, this expansion faces regulatory challenges, particularly in states with restrictive regimes against non-lawyer ownership of law firms.
What's Next?
KPMG's expansion in Arizona is under scrutiny, with the state's Committee on Alternative Business Structures recommending rule changes to ensure firms serve Arizona businesses and consumers. The Arizona Supreme Court is set to decide on these changes next month. KPMG's ability to navigate these regulatory hurdles will be crucial in determining the success of its legal services expansion. The firm's commitment to community service and pro bono work in Arizona may play a role in addressing regulatory concerns and demonstrating its dedication to serving local clients.
