KPMG halts legal services
KPMG has announced that it is ending the provision of legal services provided by its legal arm, KLegal, to avoid conflicts of interest.
It is the first firm to take action on legal services to reflect changes in US corporate governance rules enshrined in the Sarbanes-Oxley Act.
The Act bans accounting firms from providing legal services to audit clients. Deloitte is also understood to be reviewing its links with affiliated legal practices.
KPMG said it would remain a multi-disciplinary firm focused on audit tax and advisory services.
‘Member firms of the KLegal International network are now discussing the formation of a new legal grouping that will be completely independent of KPMG, and which will work with KPMG member firms – where appropriate – on a non-exclusive basis,’ KPMG said in statement.