The move opens the door to the start of compensation claims from customers to the FSCS.

The firms declared in default included independent financial adviser and ISA manager Copia Wealth Management which was ordered by the Financial Ombudsman Service to pay compensation after giving a client unsuitable pension transfer advice.

Other financial advisory firms declared in default include Birmingham-based Inspired Wealth Limited, York-based Grosvenor Financial Consultants Limited, Leeds-based RHT Financial Services Limited, Manchester-based Sequence Financial Management Limited and Wigan-based Gardner Massey Wright IFA Limited.

Liberty SIPP was also declared in default by the FSCS after being placed into administration on 27 April last year. It is one of a number of SIPP providers to hit problems and mounting claims.

Full List of Declarations by FSCS from 1 Jan to 28 Feb 2021: 

Jan. 2021 - 11 firms: 

• Inspired Wealth Limited, FRN: 542091, 79 Caroline Street, Birmingham, B3 1UP 

• Copia Wealth Management Limited, FRN: 605906, The Forum, Tameside Business Park, Windmill Lane, Denton, Manchester, M343QS 

• Atlas Travel Insurance Services Ltd, FRN: 314698, 37 Kings Exchange, Tileyard Road, London, N7 9AH 

• Grosvenor Financial Consultants Limited formerly Decormore Limited, FRN: 230573, Pavilion 2000, Amy Johnson Way, York, YO30 4XT 

• Pembrokeshire Mortgage Centre Limited T/A County Financial Consultants, FRN: 479220, Gareth Bishop & Sandra McAlister, McAlistr & Co Insolvency Practitioners, 10 St Helens Road, Swansea, SA1 4AW 

• RHT Financial Services Limited, FRN: 230738, Jubilee House, Church Street, Morley, Leeds, LS279JQ 

• Liberty Sipp Limited t/a Liberty Pensions, FRN: 476409, The Exchange 5 Bank St, Bury, BL90DN 

• Red Kite Finance Limited formerly Thorpe Park Finance Limited, FRN: 451882, 5 Carrwood Office Park, Leeds, LS15 4GL 

• Prometheus Insurance Company Ltd, FRN: 207638, Suite 943, Europort, Gibraltar 

• Gardner Massey Wright IFA Limited T/A Eskdene Associates, FRN: 463349, 35 Market Street, Hindley, Wigan, Manchester, WN23AE 

• Sequence Financial Management Limited t/a Sequence Pension Solutions, Moneybrain Robo-Advice, FRN: 528196, c/o Leonard Curtis Recovery, Riverside House, Irwell St, Manchester, M35EN 

Feb. 2021 - three firms: 

• Universal Capital Markets Ltd, trading as Nexus Capital Ltd, trading as Aspire Trade Ltd, FRN: 434114, International Development Centre, Valley Drive, Ilkley, LS298PB 

• Sterling Pension Management Limited formerly F E Wright (Pensions & Financial Planning) Ltd, FRN: 114862, City Reach, 5 Greenwich View Place, Millharbour, London, E14 9NN 

• John Coldwell Pensions & Investments Limited Formerly Prophecy Pensions and Investments Limited, FRN: 490611, 110 Fenchurch Street, 6th Floor, London, EC3M5JT.

Sarah Marin, FSCS's interim chief customer officer, said: "FSCS puts customers and their need for trust in financial services first. This focus is needed more than ever, with the increased potential for financial vulnerability as a result of the pandemic. FSCS's protection increases consumer confidence when buying financial products and services, and our compensation helps put customers back on track if firms should fail."

In January the FSCS said it is forecasting a levy for 2021/22 of £1.04bn, up £339m from the £700m raised the previous year due mainly to soaring numbers of claims.