Timeline

Pre 2019 – mid 2020

Model Rule of Professional Conduct 5.4, on the Professional Independence of a Lawyer by the American Bar Association’s (ABA) is still in force. Its provisions
include- “A lawyer or law firm shall not share legal fees with a nonlawyer; “a “lawyer shall not form a partnership with a nonlawyer;” and a lawyer shall not practice law for profit if “a nonlawyer owns any interest therein.”

2020, Arizona

The state of Arizona, through the Arizona Committee on Alternative Business Structures (ABS), (which is part of the Arizona Court System) commenced a review
of Model Rule 5.4 and its implication on access to justice in the state. By August 2020, the Arizona Supreme Court approved the elimination of Model Rule 5.4 with
effect from 1, January 2021.

1 January 2021 Arizona

Subject to the Supreme Court’s approval, non-lawyers in Arizona can take a commercial interest/stake in a law firms as well as have co-ownership. Nonlawyers
are also permitted to provide “limited legal services” to clients.

1991 – 2024, United States

Other states in the USA have made similar provisions. District of Columbia, 1991; Utah, 2020; Washington State 2024. In announcing the Utah Supreme Court’s
unanimous vote to authorize the pilot program, the state’s court system stated it will “allow individuals and entities to explore creative ways to safely allow lawyers and non-lawyers to practice law and to reduce constraints on how lawyers market and promote their services.” The project stalled in Florida and California.

2024- 2025

KPMG US applied to the Committee on Alternative Business Structure to be granted a license for the practice of law as an ALP. This was granted by the Supreme court in the recommendation of the Committee

February 2025

KPMG Law US can practice law in the state of Arizona, on the condition that it refrains from performing legal services for any of KPMG’s audit clients. The US
securities law prohibits accounting firms from providing legal services for clients within the USA.