The Financial Services Compensation Scheme has declared BSPS-linked firm Green Gem Financial Ltd (FRN: 400488) in default over pension transfer advice, opening the door to compensation for ex-clients with valid claims.

It said Birmingham-based Green Gem was one of the companies associated with claims related to the British Steel Pension Scheme (BSPS).

The FCS said there were four claims in total against the firm, one of which has been upheld and two rejected. All related to pension advice.

The FSCS declared Green Gem Financial under investigation in March 2023. The upheld claim has triggered the FSCS's declaration of default.

Green Gem Financial received its FCA authorisation in September 2004 but lost authorisation in December 2023, according to the FCA register.

Its director Mark Green was also involved with registered firms including TenetConnect Services Limited, which is currently involved in an insolvency process, and Independent Financial Advice Bureau Limited.

According to Companies House, Green Gem Financial went into creditors voluntary liquidation in November 2022 and was dissolved in March.

As Green Gem Financial has now gone out of business, it is no longer able to continue to take part in the FCA's BSPS redress scheme. Therefore any new claims against the firm should be submitted to the FSCS.

In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension.

The FCA has set up a redress scheme for people who were advised to transfer out of the BSPS pension between 26 May 2016 and 29 March 2018.

Firms were asked to review the advice they gave, identify if it was unsuitable and calculate and pay redress to clients where the unsuitable advice caused a financial loss.

Financial advisers who gave bad advice to BSPS victims have been ordered to pay just £8.87m in fines and redress to BSPS victims - far less than the £50m expected, an FCA report revealed in July.