A Midlands-based pension adviser firm has failed and been declared in default by the Financial Services Compensation Scheme, the industry compensation safety-net.

Intelligent Wealth Management Partnership Ltd of Lichfield, trading as IWMP (FRN: 527010), has received two claims against it for pension advice.

One of the claims has been upheld, triggering the FSCS default decision for the firm, which was dissolved in March this year. The other pension claim is still being investigated. Neither of the claims is BSPS related.

A default declaration by the FSCS means the firm is unable to pay compensation owed to ex clients who have submitted successful claims.

IWMP, which employed 11 regulated staff when it failed, was established in 2011.

It ceased to be authorised after 15 September 2021 with a voluntary liquidator appointed in March 2022. A liquidator’s report in May 2023 found £25.55 left in the firm’s bank account.

The declaration of default by the FSCS means it is now able to pay successful claims up to £85,000 per claim, the maximum limit for FSCS compensation.

So far this month 10 firms have been declared as failed or under investigation by the FSCS, most of them financial adviser firms.

Last week the Financial Services Compensation Scheme declared former national IFA, pensions and employee benefits firm LEBC Group Ltd (FRN: 760755) in default after receiving 218 claims against the firm. According to the FSCS, LEBC Group was a financial advice firm which advised some customers to transfer their pensions out of Defined Benefit pension schemes. 

The FSCS last week also declared in default Woking-based Frobisher Capital Ltd (FRN: 583211). The FSCS said it had one claim against the firm which was investment advice-related and not connected to BSPS claims.

The FSCS is funded by an industry levy but handles complaints from consumers for free.