The Financial Services Compensation Scheme, the safety-net scheme for retail investors, declared eight firms in default in June and July, it has confirmed.

The default declaration opens the door to clients of the firms with valid claims to seek compensation of up to £85,000 per claim.

All the firms have gone out of business and are unable to meet claims themselves.

The FSCS has stressed that its service is free to customers and protection covers money held in bank, building society and credit union accounts. The FSCS also protects clients investing in pensions, financial advice, insurance, investments, mortgage advice and arranging, debt management and funeral plans.

Jonathan Pallant, head of stakeholder and public affairs at the FSCS, said: “We know it can be incredibly stressful losing money when a financial firm fails. That is why we are reaching out to let customers know that they may be eligible for compensation if they have lost money with any of the eight UK-regulated financial services firms that failed in June and July 2024.”

Defaults declared by the FSCS from 1 June to 31 July were:

 Source: FSCS

The FSCS was set up by Parliament in 2001 under the Financial Services and Markets Act 2000. It is funded by a levy on financial firms authorised by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).