A letter, from FCA chief executive Andrew Bailey to CEOs of SIPP providers, warned of the “potential implications” for other firms as a result of the ruling against Berkeley Burke.

The High Court rejected Berkeley Burke's claim against the Financial Ombudsman Service (FOS) decision from 2014.

FOS ruled Berkeley Burke had to compensate a client after it failed to carry out appropriate due diligence on their investment.

In a letter dated 30 October Mr Bailey wrote: “Pending the outcome of any appeal of today’s judgment and these other cases, we expect you to consider the potential implications of them for your firm and its customers.

“We will be contacting SIPP operators to discuss what these may be.

“If the outcome of any of these cases calls into question your firm’s ability both now and in the future to meet its financial commitments as they fall due, you must notify the FCA immediately.

“Where relevant, firms should also notify claims to their professional indemnity insurers in accordance with their policies.”

The letter added: “We remind firms that they must communicate with us in an open and cooperative way, and must disclose to the FCA appropriately anything relating to them of which we would reasonably expect notice (as set out in Principle 11).

“This includes if a firm is proposing to sell all or a significant part of its business to another firm, or is considering winding up its business.

“We expect firms to discuss such relevant matters with us at an early stage and before making internal or external commitments.”