Financial adviser for a company director: what should you look for?
Directors often need someone who can see both the personal balance sheet and the company sitting beside it.
Explore business-owner financial advice →
Common areas of planning
The adviser may need to work with other professionals
Company tax, transactions and legal structuring can require accountants, solicitors and other specialists. Ask how the financial adviser coordinates rather than assuming they personally provide every type of advice.
Ask whether directors are a normal client type
A profile saying 'business owners' is useful, but a better question is how many director or owner-manager clients the adviser regularly serves and what problems they normally solve.
Match the ongoing fee to the ongoing work
If the adviser proposes a recurring percentage charge, ask what company-director planning continues each year and what would happen if you only needed one-off work.
Separate company resources from personal resources
Begin with two records: the company's cash, obligations and expected trading needs, and your household's income, assets and commitments. A healthy company bank balance is not automatically money available for personal investment. Ownership and the route by which money becomes personal both matter.
Coordinate the adviser with the accountant. The accountant can establish the company's position and relevant tax treatment; the financial adviser can assess personal planning within the agreed scope. Confirm who checks calculations and who implements payroll, dividends or pension contributions.
Ask whether the adviser understands the way your income is actually paid. A plan based on regular salary alone may miss variable dividends, retained profits, personal guarantees or reliance on one business.
Make pensions and protection part of the same discussion
If pension saving is proposed, distinguish personal and employer contributions and check the applicable limits and tax treatment. Do not assume that the amount a company can afford, the annual allowance and personal tax relief limits are the same question.
Review what would happen if you could not work. Household income, business continuity and the value of your shareholding may all depend on the same person. Protection for the company and protection for your own spending serve different purposes.
For illustration, a director might have modest salary, variable dividends and a large expected business value. Treating the business valuation as an available retirement fund could conceal both timing and sale risk. The plan should show resources already accessible separately from a possible future exit.
Agree the division of professional work
Ask for a written outline of the adviser, accountant and solicitor's roles. Company transactions, ownership agreements and personal recommendations should not fall between them. Give permission for relevant information to be shared through agreed secure channels.
Request fees for the actual work, including whether reviews of changing earnings or major business events are included. A generic investment service may not cover company-owner coordination.
Revisit the plan after changes in ownership, borrowing or business performance. The connection between company and household makes those events relevant even when your personal investment portfolio has not changed.
Sources and further reading
MoneyHelper - Choosing a financial adviser ↗
HMRC: pension annual allowance ↗
