Two financial advice firms - one in Cardiff and one in Bristol - have been declared in default by the Financial Services Compensation Scheme with a combination of over 100 claims related to pension transfer advice.

Cardiff-based Prism Independent Financial Advisers Limited (FRM 515431) entered FSCS default on 11 July following voluntary liquidation in December 2020.

The FSCS has received 53 claims so far against Prism. Some 50 claims are in progress, 2 have been rejected, and 1 upheld. All claims are pension transfer related.

The firm was founded in September 2000 by Martin Evans and Andrew Charles.

Wealthmasters Financial Management Ltd (FRN 536087) entered default on 11 July, and is no longer trading.

So far the FSCS has received 58 claims against the firm. Some 54 are in progress, 3 have been rejected, and 1 has been upheld. All claims are pensions and investment advice related.

The Bristol-based firm also traded as Gryphon Capital, Invictus Wealth, and Sydney Charles UK.

Both firms were associated with claims related to British Steel Pension Scheme (BSPS) members.

The companies were declared in default yesterday and the FSCS said both have open claims related to BSPS transfers.

In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, typically a personal pension or a Self-Invested Personal Pension (SIPP). The scandal has attracted national attention and criticism.

There has been a string of other enforcement actions against BSPS-linked firms in recent months.

In July the Financial Conduct Authority banned Birmingham-based adviser Paul Steel of Estate Matters Financial Ltd (EMF) from working in financial services. The firm will also pay £850,000 to the FSCS.

Last month the FCA banned Pembrokeshire BSPS adviser Denis Lee Morgan. The FSCS has so far upheld 213 claims against his firm Pembrokeshire Mortgage Centre Ltd.

Also in June, the FCA banned financial adviser Mark Abley of County Capital Wealth Management Ltd and told him to pay £106,100 to the Financial Services Compensation Scheme (FSCS) for poor pension transfer advice to BSPS members.