The move opens the door to clients claiming compensation.

There have been two claims against the firm so far – one rejected, one upheld and triggering the default, the FSCS said.

Both claims were for pensions advice, with the upheld claim for a pension transfer.

As the firm has failed the FSCS has stepped in as the business is unlikely to be able to meet any claims itself.

The firm had been active since 2007 and also traded under the names Steve Thomas Financial Services, Chepstow Financial Services and Any Mortgage Matters.

It had also previously traded under the name Private Planning Solutions.

The director of the firm was Stephen Glyn Thomas, a member of the Chartered Insurance Institute who is a former investment adviser with Quilter Financial Planning Solutions.

According to the FCA Register, Mr Thomas has also more recently worked for True Potential Wealth Management.

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.