The 'Big Four' firm is also thought to be considering whether to seek a licence to operate in the UK as an Alternative Business Structure (ABS). Non-lawyers are now able to offer legal services in the UK if they set up an ABS. If KPMG does so, it will increase the interest of other accountancy practices to do the same thing.

Competition with top-end firms

KPMG's recruitment process in Manchester is now fully active on the current task, seeking a team of four or five corporate lawyers, led by a member of the team at partner level. A senior partner in another firm told Legal Business: 'I suspect KPMG won't be in the market to compete on the high street, but [this new operation] would instead act as an internal team to advise large groups for which it would normally use top-end law firms. This in itself won't have a big impact; however, that would all change should it apply for an ABS licence.'