What's the difference between a financial coach and a financial adviser?

If you’re familiar with the world of finance, you’ll most likely be familiar with financial advisers, whereas financial coaching is a relatively new role. Hatch is a regulated financial advice company, but since we use both financial coaches and financial advisers to provide our service, it’s important to understand the difference.

The main difference is that financial advisers are authorised by the Financial Conduct Authority to recommend specific financial products to clients (e.g. a specific investment fund or mortgage). By contrast, a financial coach is usually not as highly qualified and is not authorised to recommend specific products.

As a Hatch client, your financial coach will be your main point of contact and will provide financial guidance on on any areas of your finances - from discussing your goals, to building a financial plan, to outlining how your financial situation could be improved. They are highly trained and can discuss any area of your personal finances, but will never recommend specific products, since that would be regulated advice.

When you do need regulated advice e.g. which is the best mortgage for you, or what portfolio of investments would be most suitable, your coach will either put you in touch with one of the fully qualified financial advisers we work with to provide that advice, or give you access to our automated investment advice service which will recommend a suitable investment portfolio for you.

Working this way allows us to keep the cost of Hatch affordable, while still ensuring that you get the best advice when you need it.

Here’s a full summary of the difference between a financial adviser and a financial coach:

A Hatch Financial Coach:

  • Is accredited by Hatch. All our coaches have been put through our extensive training course to ensure they have the knowledge and skills required.

  • Can discuss your situation, your goals and your finances.

  • Can build your financial plan and explain what it shows.

  • Can discuss anything about areas of your finances that are not regulated e.g. planning, budgeting, etc.

  • Can provide guidance (but not product recommendations) in areas that are regulated e.g. they can discuss the pros and cons of investing for you, but can’t tell you whether a specific investment is suitable for you.

A Financial Adviser:

  • Is usually more highly qualified than a financial coach.

  • Is authorised by the Financial Conduct Authority to recommend specific products to clients.

  • Can discuss more complex situations than a financial coach e.g. if you’re approaching retirement and want to know the best way to start withdrawing from your pension.

If you have any questions about the difference between financial coaches and financial advisers, please let us know! You can send us an email at support@hatchplan.co.uk or give us a call on 0203 111 0589.