Puerto Rico has updated its legal ethics rules, now permitting nonlawyers to have ownership stakes in law firms, which diverges from the traditionally strict ABA Model Rule 5.4 on professional independence. While nonlawyers can own up to 49% of a firm, the law offices must be managed by Puerto Rican licensed lawyers, who retain full control over professional judgment. This rule, also reflecting changes in Arizona, the District of Columbia, and Utah, will be evaluated by the Puerto Rico Supreme Court after three years to determine its effectiveness.
Puerto Rico's new ethics rules allow nonlawyers to own up to 49% of law firms, breaking from traditional ABA guidelines and providing a new model for legal ownership.
The rule aims to maintain professional independence by restricting nonlawyer involvement, allowing only limited ownership stakes while ensuring licensed lawyers operate the firms.
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