The move opens the doors to ex-clients to claim up to £85,000 per claim if they were wrongly advised.

The failed firms are Frodsham Financial Planning and Sterling Green.

Rochdale-based Frodsham Financial Planning Ltd, formerly Tom Carroll Associates Financial Planning Ltd (FRN 214554), has two claims against it so far with one upheld and one in progress. The claims relate to home finance and pensions.

Cheshire-based Sterling Green Ltd (FRN 469956) has four claims against it so far with two upheld and two in progress. All the claims relate to SIPPs.

The FSCS has so far declared eight firms as failed or under investigation this year including five this month so far.

Last week Liverpool wealth manager and DFM provider Blankstone Sington Ltd (FRN: 143694) was declared as failed by the Financial Services Compensation Scheme. The firm offered services relating to Sipps, estate administration, personal and trust taxation services and ISA advice.

Earlier this month the FSCS declared a Portuguese financial firm involved in the UK SIPP market, in breach of its regulatory permissions, as failed. Abana Unipessoal Lda, formerly Abana Lda (FRN 597069), used the EU passporting rules to operate in the UK but went beyond its remit in arranging SIPP-connected pension transfers.