I have often advocated the merits of using specialists for specific matters, particularly when it comes to tax and law. However, it is important that the specialist liaises with the financial adviser because the latter will usually have a greater understanding of the client’s overall aspirations and financial status. Not all specialists think outside the box, limiting their advice to the subject in question and focusing on the advantages of a particular course of action without acknowledging, or even appreciating, the disadvantages.
We experienced an example of this only recently when one of my clients counselled opinion from a specialist tax adviser in the city. The merits of setting up a limited company through which to acquire investment properties were clearly highlighted but what was overlooked was the fundamental problem that the limited company did not have a trading history and, consequently, the likelihood of it being able to borrow money was very small. This can also be the case when accountants advise on incorporation.