EY (formerly Ernst & Young) has hired Addleshaw Goddard corporate head Phillip Goodstone to establish and lead its UK legal practice.
The accountancy firm is in the process of obtaining authorisation as an alternative business structure (ABS), which would allow it to operate a legal branch without the limitations or Chinese walls that normally exist for service providers with legal capability.
Goodstone is a former Clifford Chance lawyer, joining Addleshaws in 1997 where he rose to lead the corporate department. He is set to join EY in September 2014.
In a statement, EY said: “The appointment has been made with a view to building a legal capability for EY in the UK, subject to regulatory approval, which would complement the firm’s existing service offerings.”
EY’s close competitors PricewaterhouseCoopers (PwC Legal) and KPMG have made similar moves in the last few months, with PwC being granted its license in January.
The ABS structure is a new business model for UK law firms and is described by the Solicitors Regulation Authority (SRA) as: "a new type of law firm structure allowing non-lawyers and external investors to share management and control of law firms. This means that new types of law firm can be created, and businesses that couldn't previously offer reserved legal services will now be able to invest in law firms, and offer legal services in new, flexible ways."
Originally born out of the 2007 Legal Services Act the new model also allows for external investment into the sector as has been seen with Australian firm Slater & Gordon who have acquired a number of small UK outfits as part of its expansion strategy.