management consulting business does not include Bermuda's Ernst & Young Consulting Limited, said Ernst & Young Bermuda Managing Partner Jan Spiering.

The announcement comes on the heels of New York-based Ernst & Young's decision to sell this part of their accounting business to the French computer consultant in a cash-and-stock deal. "Our Bermuda consulting group is not part of the sale to Cap Gemini,'' reported Mr. Spiering.

"Whilst we provide an extensive range of consulting services locally, ranging from financial consulting; internal audit and information systems auditing; application development; and technology consulting to human resource consulting and e-business consulting, our practice here in Bermuda will be retained as part of Ernst & Young's Information Assurance and Advisory Services and Business Services practive areas.'' Mr. Spiering added the firm believed Cap Gemini's purchase of Ernst & Young Consulting would provide it with additional opportunities to draw on expanded services.

Observers of the sale, according to weekly periodical Business Insurance, say it may ease regulatory pressures on the company while enhancing competition in the risk management and employee benefits consulting market place.

The deal follows moves by two other "Big Five'' accounting firms to address concerns of the Securities and Exchange Commission (SEC) that their core tax and auditing practices and management consulting operations were separate and did not pose conflict-of-interest issues.

August, 1999, saw KPMG L.L.P. announce its plan to spin off its management consulting practice with an initial public offering later this year.

And in February of this year, Pricewaterhouse Coopers said it was planning to separate its business into two or more operating units. SEC chief accountant Lynn Turner told Business Insurance: "The SEC staff and others have expressed significant reservations about the exponential growth of the range of services that auditors now offer to clients...''