The declaration opens the door to ex-clients with valid claims to seek up to £85,000 in compensation.

The two firms are:

• Chesterfield-based Holistic Pension Transfer Specialists (FRN 747407). The firm was declared in default by the FSCS this week after the first claim was upheld. There are 11 claims in total and so far one has been rejected and one has been upheld. Most of the claims are pension transfer advice related, the FSCS said.

• East Sussex-based J Monroe Ltd (FRN 791232) was declared in default today after the first claim was upheld. The claim is understood to be SIPP related.

Holistic Pension Transfer Specialists was authorised from 2017 and is still authorised, according to the FCA register, but is now going through insolvency. The only regulated individual listed on the FCA register as working for the firm is SMF1 chief executive Stephen Frederick Hardy.

J Monroe, which also traded as Compendium Wealth and Summit Wealth Management, was based in Hailsham, East Sussex and ceased to be authorised after August 2021. It was a member of the Validpath IFA network and described itself as providing “independent Financial Planning services.”

A number of people were connected to the firm, with Julian Kim Monroe listed as the CF1 director. The firm is now in liquidation.

A string of pension transfer advisers have failed in recent times. In June the FSCS declared Glasgow-based financial adviser firm MacInnes & Bottomley (FRN 121661) in default after a first claim was upheld. The firm currently has two claims against it, both for pension transfer advice.

Eight financial advice firms were declared in default or under investigation by the FSCS in June.