seeks to position itself for new business on the cutting edge of the evolution of the industry.

Kempe & Whittle/Ernst & Young International has between 135 and 140 people on staff, half of whom are chartered accountants, and managing partner, Mr. Jan Spiering, said accounting firms in general will have to reorganise to prepare for emerging customer needs.

Global trends that include improved communications, the opening up of previously-closed markets, growth and consolidation, mergers and acquisitions and new emerging markets, have led corporations to look at larger business opportunities around the globe.

It is as a result of these moves that more and more expertise is being required to advise corporations on any number of matters. Accounting firms are being asked by these corporations to do more than just keep the books.

"We see a need to provide a lot more consulting services,''said Mr. Spiering.

"The auditing firms of old provided audit reports. Now we are seeing requests from our clients to add value, to talk about where opportunities lie.

"We and the other "big six'' firms have huge resources around the world and can assist clients in terms of getting into various countries. With that comes the question of what is the tax implications and what kind of set up technology is needed, and what kind of business advice can be provided.'' Mr. Spiering forecasts a lessening in the number of traditional accountants in the firm, as more emphasis is placed on consulting.

"To the fore will come the technology people, with imaging, EDI and other technologies that will assist a client company in better meeting its goals.

"I think there will be less of the big liquidations like we've seen recently.

Here's a natural progression to consulting. I think you'll see much more effort to work out problems before it gets to the liquidation stage.

"Run-off situations will be occurring, but the expertise that we've gained from the liquidation field again, provides us with insights that we feel will be valued by our clients.

"So when you are going to do an audit now, you are not just going to sign off the financial statements. A firm may be interested in knowing what we think of the contract wording they have. Again, we have been involved in many liquidations which has led to us having an understanding of how disputes arise with regard to contract wording, which will enable us to advise them on a consulting basis on how to improve their contract wording.'' The firm has renamed its insolvency division, the special services group. The group had dealt basically with insolvencies. But they are now using their skills to give business advice, being able to share, as business advisors, the information they gained from past insolvencies, with their current clients.

They are adding consulting lines to the prime areas of business they are involved in, and concentrating department focus in a different way. In the past, they were grouped into disciplines: such as an audit department, an accounting department and an actuarial department.

They have reorganised into specific teams that will concentrate on their insurance business, their investment business, their hospitality and retail businesses.

"If someone from the insurance industry comes to us and asks if we can assist them, we have the actuaries, the US tax person, the insurance auditors, the special services people with insolvency and contractual experience and background all there to act as a team. We can turn around and say we can help you in whatever area you want in the insurance business.

"The importance of teams is that we no longer have to send one person out to a client to do a job. We send a team out and everyone will break the job up into the specialised areas they have expertise in.

"We have been encouraging additional specialisation from our people. We want people to get their qualifications as an accountant and subsequently get a specialist qualification in insurance or investment.

"That is what we are telling our Bermudian students. We tell them that it is a long road of study that they are embarking on.'' Ernst & Young Bermuda is operating with new goals. Their mission statement indicates a desire to become the leading professional business and information services firm. They are no longer seeking to cast themselves in the limited role of just the biggest or best accounting firm.

Said Mr. Spiering: "We see ourselves now in the light of a business services firm. That includes information technology. It includes actuarial issues. We have three actuaries on board. We have a US tax advisor. These are all for the global things that we are looking at.

"So where does Bermuda fit in this. Bermuda, in our view, is going to have an advantage over the offshore competition in that we have a great professional infrastructure.

"These other offshore jurisdictions are increasing their competition for the businesses that just require administrative work and a nameplate on the door.

"However, the businesses of substance, the Centre Res of this world, the Mutual Risks, the Stockton Res, they are coming to Bermuda and dealing in the global marketplace. They are going to want to know the tax effect of doing certain things. That's why we have a tax expert on staff.'' Another issue is capital markets, especially with the plans for the Bermuda Stock Exchange. The financial services industry for firms will grow.

Because the local firm has been so focussed on industry specialisation, they have developed strong links with Ernst & Young International and the US firm.

A local partner is allowed to sit on the insurance steering committee for Ernst & Young in the US, the only non-American to do so.

Mr. Spiering believes that it shows the recognition of Bermuda as a major market. And he sits on the international investment steering committee for the firm.

Bermuda is represented along with France, Switzerland, US, the UK and Canada.

He said that it again reflects the fact that, especially for its size, Bermuda is being extremely, well thought of.

Mr. Jan Spiering