BSPS-linked advice firm DC Financial Limited (FRN: 170299) has been declared as failed by the Financial Services Compensation Scheme.

The move opens the doors to ex-clients to claim compensation from the FSCS up to a maximum of £85,000 per claim.

DC Financial Ltd was based in Carmarthen, Dyfed in Wales and is one of the companies connected to advice claims related to the British Steel Pension Scheme (BSPS). 

The FSCS said it had received 111 claims against the firm so far.

Of the claims, one has been upheld (triggering the default declaration), one has been rejected and 109 are in progress.

The majority of the claims are from former members of the BSPS who took advice from the firm to transfer out.

According to Companies House, DC Financial was incorporated in 1995 and was known as SystemCover Ltd between February and April that year.

The FCA’s register reveals the firm received authorisation from the FCA in 2001 and went into liquidation in March this year with Birmingham liquidators appointed.

The firm is the latest firm to be declared failed following the BSPS scandal which saw many British Steel workers wrongly advised to transfer out of their DB pension into a DC pension.

In September FCSC data showed that 40 financial advice firms hit by BSPS claims had so far failed with a further seven under investigation.

Last month Swansea financial adviser Simon Hughes was banned by the FCA and made to pay £158,600 redress for “negligent” pension advice which led to £8m compensation being paid to his BSPS-member clients.

In September the FCA banned Darren Reynolds and Andrew Deeney of Active Wealth Limited for dishonest pension transfer advice. Mr Reynolds advised 150 BSPS members to put their money into investments that the regulator said he knew were not suitable for them.