The move opens the door for clients of the Financial Planning firm to seek compensation.

The default comes a year after the Glasgow-based firm lost a court case for unfair dismissal and was ordered to pay £140,000 to a former employee.

In December 2021 Alexander Sloan was ordered to pay Colin Rodger £123,348.80 for unlawful deductions from wages along with £16,320 in compensation for unfair dismissal.

Mr Roger had been employed by the Financial Planner between June 1999 and June 2021 as a financial adviser.

He was also a director and held a 26% share in the business.

At the time he was the only financial adviser employed by the business, and provided investments and pensions advice to clients of Alexander Sloan Accountants.

Following a visit from the FCA in July 2018, the Financial Planning firm had its authorisation temporarily removed while an investigation by the regulator took place.

The Financial Planning firm then failed to pay Mr Roger between September 2018 and his resignation in June 2021.

When giving evidence Mr Roger said that he expected to be paid eventually but received no reply to multiple emails.

In March 2021 Alexander Sloan dropped its FCA permissions.

The FSCS has reminded victims of firm failure that it is independent, its service is free to consumers and customers keep all the compensation they are owed when they claim through the FSCS.

FSCS protection covers money held in banks, building societies and credit union accounts. The FSCS also protects insurance, investments, mortgage advice and arranging, debt management and funeral plans.