The move opens the doors to ex-clients to claim up to £85,000 per claim if they were wrongly advised.

The FSCS told Financial Planning Today that it has received four claims against the firm. It said three have been rejected, but one relating to a collective investment scheme has been upheld, which has triggered the default declaration.

According to the FCA Register, Finsbury Financial lost its FCA authorisation in June 2017. It had been registered under the names Finsbury Financial Limited and Finsbury in October and December 2009.

According to Companies House records, the firm was incorporated in December 2008 with an address in Basingstoke and dissolved in March 2020. The nature of its business was listed as ‘financial intermediation’.

Of five directors of the failed firm, four had resigned by 2015, leaving one whose country of residence was listed as Cyprus.

Last month the FSCS declared five firms as failed, including Manchester-based Pension Advice Specialists Ltd (FRN: 792927).

It was the latest in a number of firms that have failed due to complaints involving pension transfer advice, including Sheffield-based Abbey Lane Financial Associates Limited (FRN 649170), which also failed in March and was linked to the BSPS scandal.

Another BSPS-linked firm was declared in default in March Aqua Financial Services Limited of Cheadle in Cheshire.

two SIPP-related firms and one linked to BSPS also failed in late March. The failed firms are Aqua Financial Services Limited formerly Aqua IFA Limited (FRN 228652), Strategic Investment Solutions Limited formerly Cobco (291) Limited and Denton Mortgages & Loans (FRN 230902), and Fresh Financial Solutions LLP (FRN 471129).

Earlier in March the FSCS declared Swindon-based advice firm AP Financial Services UK Ltd in default after upholding a pension transfer complaint against the firm.

The Financial Services Compensation Scheme plans to increase its workforce by about 25% by 2024/25 to cope with a surge in complex cases, the body confirmed to Financial Planning Today in January.

The FSCS headcount is set to rise from 254 to 321 with the recruitment of 67 new staff.