County Durham-based firm D&G Financial Services Ltd (FRN: 208521) has been declared in default by the Financial Services Compensation Scheme.

The compensation body has so far received two claims against the firm relating to pension advice and British Steel Pension Scheme transfers.

So far one claim has been upheld, triggering the FSCS default process.

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

D&G ceased to be regulated by the FCA in January 2021. It also traded under the name D&G Insurance Services. The firm was also know as AWC Insurance services between February 2005 and January 2011.

At the time the firm ceased to be regulated it employed six financial advisers.

In December the FSCS declared six advice and pension firms in default, with an additional two firms under investigation.

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.