The Financial Services Compensation Scheme has this week declared as failed WJR Financial Solutions Ltd of Sunderland after receiving a number of claims against the firm.

The declaration of failure by the FSCS means the financial adviser firm cannot meet the cost of any claims and the FSCS will step in to compensate investors.

The FSCS said it had received five claims against the firm relating to investment advice with one upheld so far, triggering the default declaration.

The declaration of default means the FSCS, the industry-funded compensation safety net for consumers, can now consider valid claims by former clients, up to a limit of £85,000 per claim.

The FSCS said this week that the firm had gone out of business and was unable to meet the cost of any claims.

WJR Financial Solutions Ltd is no longer trading and ceased to have regulatory approval in November 2020. It was dissolved as a company in November 2021. 

The firm was based at the Business & Innovation Centre, Sunderland Enterprise Park in Sunderland, Tyne and Wear and Richard Scott Hardy and John Alexander Sutcliffe were listed as CF1 directors of the firm.

This week the FSCS released details of 13 firms that failed between August and November this year.