Two advice firms have been declared failed by the Financial Services Compensation Scheme this week, including a Financial Planning firm which has 25 pension transfer claims against it, including BSPS cases.

The two firms are Mercia Financial Planning Limited of Warwickshire (FRN 718251) and FSP Limited (FRN 607441) of North London.

The FSCS decision opens the doors to clients of the firms to submit claims for compensation.

The FSCS said that Mercia Financial Planning had so far received 25 claims against it, all related to pension transfers, including a number of BSPS cases. 

In January 2021 the FCA imposed a restriction on Mercia, registered since 2015, not to sell off or dispose of any assets without written consent.

Mercia applied to the FCA in May to cancel its authorisation. The firm’s website is no longer working.

FSP Limited of Wenlock Road, London N1 has two claims against it for home finance advice (mortgage and equity release advice). The firm is no longer authorised.

The FSCS is currently dealing with active claims against 30 major adviser firms who gave advice on British Steel Pension Scheme transfers, including several Financial Planning businesses. It is also dealing with a number of BSPS claims against smaller firms. Details of the firms are here: https://www.fscs.org.uk/making-a-claim/claims-process/british-steel-pension-transfer/