The decision of PricewaterhouseCoopers’ (PwC’s) City law arm Landwell to offload its lucrative tax litigation department has cast a further shadow over the post-Enron feasibility of accountancy-tied law firms.

The development, revealed by Legal Week on 6 February, is being viewed by City lawyers as a
startling admission that Landwell can no longer advise the US-registered clients of its PwC-parent without falling foul of the tough new regulatory regime in the US.