PracticeAccounting FirmsFirms hive off legal provisions

Firms hive off legal provisions

Accounting firms are rethinking their legal service provision in an aim to appease regulators. KPMG announced last week that its legal arm, Klegal, would become wholly independent of the firm, because of the implications of Sarbanes-Oxley.

Link: KPMG halts legal services

KPMG’s move reverses the trend seen in the nineties, when big accountancy firms provided their clients with multidisciplinary services.

‘The new environment means that a different approach to legal services is required,’ said Mike Rake, chairman of KPMG International. ‘It will allow our member firms to focus their resources on expanding their audit, tax and advisory services.’

Deloitte confirmed to Accountancy Age that it was reviewing its links with affiliated legal practices.

PricewaterhouseCoopers said that it had already split with some overseas law firms, but in a statement confirmed its commitment to its UK law firm Landwell. ‘This is a professional relationship, which is in keeping with the current regulatory climate and in the best interests of its clients,’ it said.

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