Andersen Legal managing partner Tony Williams said, "We are confident that we are able to develop a relationship with one or more leading U.S. firms while complying with local market regulations." Williams was commenting on the recent publication of AL’s end of year fee income.

Expansion into the U.S. has been high on Williams’ agenda since he joined the firm in March, said AL spokesman Robert Rice. He has been involved in negotiations with unnamed legal firms throughout the summer.

AL law firms work closely with AA, sometimes in the same building, allowing the accounting firm to offer a "one-stop-shop" package to its clients that includes legal services. AL has member firms in most regions, except for the U.S., where the legal profession prohibits fee sharing and cooperation between lawyers and accountants.

In July, the American Bar Association voted overwhelmingly against allowing lawyers to work along side accountants in "multidisciplinary practices." However, restrictions on MDPs vary from state to state, and city to city. "New York City Bar Association is tolerant of MDPs even though New York State is not," said Rice.

He added that there were already a number of states where Andersen Legal could take on board local law firms - "The issue of MDPs will be resolved by the state bar associations regardless of the ABA’s hard line."

AA will not be the first of the Big Five to establish a multidisciplinary presence in the U.S. Ernst & Young has had an MDP operation there for nearly a year.

Send comments to information@smartpros.com

Copyright 2000 AccountancyMagazine.com. Used with permission.

Back to NewsLine