Birmingham-based BlueSky Wealth Management Ltd (FRN: 446963) has failed, opening the door to claims against the firm through the Financial Services Compensation Scheme (FSCS).

The declaration means that the firm has been deemed by the FSCS as being unable to meet compensation claims.

The FSCS told Financial Planning Today that it has received eight claims against BlueSky, all of which are pensions advice related. The first of these claims has been upheld, prompting the default declaration.

The firm had already been placed in solvent liquidation and under investigation by the FSCS since April.

BlueSky was told to cease giving pension transfer advice by the FCA in October 2020 and handed an order not to dispose of any assets without the permission of the regulator.

BlueSky was founded in November 2004 and had been authorised since 2006. The firm was also previously known as Bluesky Agency Limited.

The FSCS will now consider claims against the firm up to its award limit per claim of £85,000.

BlueSky is one of several advice firms associated with claims regarding the British Steel Pension Scheme.

Some 40 financial advice firms hit by BSPS claims have so far failed with a further seven under investigation, latest FSCS data shows. 

Claims relating to the 40 advice firms which went out of business before 28 February are now being handled by the FSCS. Compensation costs are expected to run into the millions.

Many advisers connected to BSPS failed firms have been banned or fined or both.

BSPS claims arise from members of the British Steel Pension Scheme who were advised by the advice firms to transfer their pensions to another provider. In many cases the advice was poor or misleading, the FCA has said.