Exhibit 23.1


                  Report and Consent of Independent Auditors



We consent to the incorporation by reference in this Annual Report (Form 10-K)
of Liberty Financial Companies, Inc. of our report dated February 3, 1998,
included in the 1997 Annual Report to Shareholders of Liberty Financial
Companies, Inc.

Our audit also included the 1996 and 1997 financial statement schedules of
Liberty Financial Companies, Inc. listed in Item 14(a). These schedules are the
responsibility of the Company's management. Our responsibility is to express an
opinion based on our audit. In our opinion, the 1996 and 1997 financial
statement schedules referred to above, when considered in relation to the basic
financial statements taken as a whole, present fairly in all material respects
the information set forth therein.

We also consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-90626) pertaining to the Liberty Financial Companies, Inc.
1990 Stock Option Plan, the Liberty Financial Companies, Inc. 1995 Stock
Incentive Plan and the Liberty Financial Companies, Inc. 1995 Employee Stock
Purchase Plan and in the Registration Statement (Form S-3 No. 333-20067)
pertaining to the Liberty Financial Companies, Inc. Dividend Reinvestment Plan
of our report dated February 3, 1998 with respect to the 1996 and 1997
consolidated financial statements incorporated herein by reference, and our
report included in the preceding paragraph with respect to said financial
statement schedules included in this Annual Report (Form 10-K) of Liberty
Financial Companies, Inc.




                                        Ernst & Young LLP

Boston, Massachusetts
March 25, 1998