The Financial Services Compensation Scheme has opened the doors to client compensation on two Financial Planning firms it has declared in default.

The compensation body declared Juno Moneta Capital Management Ltd and Westbury Private Clients LLP in default yesterday.

The FSCS will now step in to assess and pay accepted claims for compensation and try to recover losses if possible.

The body has received two pension transfer claims so far for Cheltenham-based Juno Moneta Capital Management Limited. It was formerly known as Corcillum Limited and traded as Morgan Peterson and BL Financial.

Westbury Private Clients was authorised by the FCA as a wealth management firm. It operated as a discretionary fund manager for the Westbury SIPP.

The firm went into liquidation in March 2018.

The FSCS said it has received claims from customers highlighting concerns that Westbury Private Clients did not carry out enough due diligence in relation to transfers/investments into the Westbury SIPP. The claims questioned the suitability of Westbury SIPP as an investment vehicle, due to the high-risk nature of the investments which led to investors losing money.

The FSCS said it has received 16 claims against the firm so far, 10 of which are in relation to SIPPs.

The compensation body added that it is currently investigating whether the firm has breached FCA rules, and whether it can pay compensation to customers.