Exhibit 23.1


                         Consent of Independent Auditors

     We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3 No. 333-0000) and related Prospectus of Liberty
Financial Companies, Inc. for the registration of 2,875,000 shares of its common
stock and to the inclusion and incorporation by reference therein of our report
dated February 5, 1997, with respect to the consolidated financial statements of
Liberty Financial Companies, Inc. incorporated by reference in its Annual Report
(Form 10-K) for the year ended December 31, 1996 and included in the
Registration Statement, and to the incorporation by reference of our report
dated February 5, 1997, with respect to the related financial statement
schedules included in its Annual Report (Form 10-K), and incorporated by
reference in the Registration Statement, filed with the Securities and Exchange
Commission.




                                                  ERNST & YOUNG LLP



Boston, Massachusetts
June 11, 1997