The firm has one claim against it for pension transfer advice (not related to the British Steel Pension Scheme), with this claim being upheld and triggering the default declaration.

The firm has gone out of business and is unable to meet any compensation claims.

The bill for compensation, up to £85,000 per consumer claim, will now be picked up by the FSCS and ultimately the regulated financial sector.

Chestergate ceased to be authorised by the FCA from December 2011. It formerly traded under the name Bradshaw Bennet Independent Financial Advisers Ltd between 2006 and 2011 and as FinancialGP.co.uk in 2009.

According to Companies House the firm was dissolved in February 2018.

There has been a recent rise in firms declared in default by the FSCS. The FSCS said that 12 regulated firms had been declared in default in February and March.

The failed firms included Pension Advice Specialists Limited of Sale; Aqua Financial Services Limited, formerly Aqua IFA Limited of Manchester; SIPP provider Hartley Pensions Limited of London and Frodsham Financial Planning Limited, formerly Tom Carroll Associates Financial Planning Limited, of Rochdale.

The Financial Services Compensation Scheme plans to increase its workforce by about 25% by 2024/25 to cope with a surge in complex cases, the body confirmed to Financial Planning Today earlier this year.

The FSCS headcount will rise from 254 to 321 with the recruitment of 67 new staff.

The consumer safety-net plans to fund the increase by bringing a large chunk of work back in-house as its moves to a ‘new operating model’ with more senior expert case handlers. It will also increases its management expenses levy.

The FSCS said that a rise in complex cases meant it needed more in-house experts to deal with cases that will include SIPPs, investments and pension transfers. Cases in these areas have grown considerably in the past few years.