KPMG Move To Scrap Global Legal Services Not To Hit Indian Arm

Mumbai, Nov 9: | Updated: Nov 10 2003, 05:30am hrs
KPMG International has announced that it will stop providing full-scope legal services and its associated legal network KLegal International will be discontinued. However, according to sources, the move will not have any impact on KPMGs India operations which do not offer legal services.

Member firms of the KLegal International network are discussing the formation of a new legal grouping that will be completely independent of KPMG, and which will work with KPMG member firms, where ever appropriate, on a non-exclusive basis. The announcement reflects changed market conditions, including the US

Sarbanes-Oxley Act, which restrict the provision of legal services, said the press statement.

KLegal brand will be discontinued. But, KPMG member firms will continue to employ lawyers in parts of their practices, particularly in support of forensic and tax services. KPMG International chairman Mike Rake said that KPMGs strategy going forward is that its member firms will be multi-disciplinary and provide assurance, tax and advisory services, with global consistency.

He added that they have been proud of the strength of KLegals capability but the new environment requires a different approach to legal services. The new approach will help KPMG member firms meet marketplace needs and be focused. It will also allow the full-scope legal practices within KLegal to operate without restriction.