Revamp of legal rules sought

By Tom Clarke

Changes in the way lawyers work are inevitable as part of the evolution of services to business, says David Lewis, the partner in charge of KPMG Legal.

KPMG Legal says it is the only legal practice that is integrated with a multi-disciplinary professional services firm.

In the nine months it has been operating it has doubled the number of lawyers practising in Auckland to 10, and had opened a new office in Wellington with two lawyers.

The law and Law Society rules do not allow lawyers to enter into partnerships with non-lawyers or share profits with any other professions.

But Mr Lewis says some clients see benefits in having lawyers and accountants working closely with each other, as happens in many countries overseas. It is time, he says, that the rules here were brought up to date.

To comply with the rules, it operates as a separate legal entity from KPMG. But Mr Lewis says it does operate in a multi-disciplinary environment, working alongside KPMG advisers in consulting, assurance, tax consulting, business and financial advisory services.

"The business people we service are not in the least interested in our structure," he says.

"In fact, most assume that we are integrated. However, we always point out our structure to ensure compliance with current rules."

Mr Lewis says while it is not an issue for the business community, it is a major change for the legal fraternity, although he believes that lawyers themselves recognise the need for change.

He wants the Law Society to promote changes to the Law Practitioners Act and rules of professional conduct to remove the restrictions. This can be done in a way that won't affect the protections in place for the public, such as confidentiality and privilege, he says.

"There has to be some deregulation and change to the structure of the laws, to enable the legal profession to provide the services the market demands," he says.

"It's a client-driven thing. If clients didn't like the idea of integrated services then we wouldn't be getting the work and we wouldn't be in business."

KPMG Legal gets around the current restrictions because it is not in partnerships with other professionals within KPMG although Mr Lewis says he would like to be.

"I'd like to share profits because you need that common economic interest to really make thing work, but I'm not allowed to," he says.

"Clients, he says, get real benefits from a comprehensive service. An overseas investor may, for example, need a tax adviser to work out how they should set up their investment and then a lawyer to put it in place.

Mr Lewis says deregulation is needed to accommodate changes in commerce and in society, and to remove a structure which inhibits the development of the law profession and which does not serve the best interests of its clients.

KPMG Legal has been joined by David Moorman and Carmel Bryne as directors. Both specialise in corporate and commercial law. Mr Moorman has worked in Canada and New Zealand, while Carmel Bryne has worked in Ireland, Britain and Europe.

Emma Huston joins the firm as an associate. She has also worked overseas and is an experienced counsel in the Employment Tribunal and Court. Nicola Ward, who has company and commercial law experience, has joined as a solicitor after four-and-a-half years with a national law firm.