KLegal Determined To Remain As Network Following KPMG Split

by Robin Pilgrim, LawAndTax-News.com, London

18 November 2003

Management at the UK operation of KLegal have expressed confidence that the network of law firms put together by accounting firm KPMG can create a new international grouping, by September 2004.

Last week, KPMG announced that it would be severing ties with its network of legal firms after four years, as a result of the provision contained within the US Sarbanes-Oxley Act which prohibits accounting firms from providing non-audit services to audit clients.

However, according to the Legal Week news service, the UK arm of KLegal is determined to relaunch the network as a new 'federation' under the name of associated Scottish firm, McGrigor Donald.

KLegal's French, Italian, and Dutch member firms have assured the UK management that they will remain as members of a new grouping, but the Spanish and German operations have expressed doubts, with the latter revealing recently that it is considering merging with another UK firm.

Speaking to Legal Week, UK head, Nick Holt announced that:

"We are relieved to be free of the unworkable regulatory constraints imposed as a result of the Sarbanes-Oxley Act and hope to reach a situation where we can now act for KPMG clients whether they are an audit client or not. I have been in constant meetings with KPMG since the decision was taken last week and the relationship remains as strong as ever."

Recommended