Both firms, one in Wales and one in Scotland, have been declared in default and unable to meet any compensation claims.

The move opens the door to the industry-funded FSCS to pay up to £85,000 in compensation per valid claim.

Scottish firm Elliot Financial Services (FRN 185289) was declared in default yesterday by the FSCS and has one claim against it. The FSCS says the firm was involved in 'home finance.' It ceased to be authorised after 2003.

Wales firm Mackie Wealth Management (FRN 498322) was declared in default by the FSCS yesterday after the first claim against it had been upheld. The firm has two claims against it, both for investment advice. 

Elliott Financial Services was based in Rutland Square, Edinburgh, and is no longer authorised. George Walter Elliot was listed on the FCA register as the CF1 director. No other regulated staff are listed.

Mackie Wealth Management was based in Mount Stuart Square, Cardiff and ceased to be authorised after 2015. The CF1 director is listed as James Francis Mackie.

The FSCS has so far in June declared seven firms as under investigation or failed, most of them financial adviser firms.