The Financial Services Compensation Scheme has declared two advice firms in default with over 88 pension transfer claims between them.

Smith, Law & Shepherds IFA Ltd and County Capital Wealth Management Ltd were declared in default by the Financial Services Compensation Scheme (FSCS) on Thursday.

The move opens the door to investors to claim compensation from the FSCS over losses due to the failed firms.

Bolton-based IFA Smith, Law & Shepherds was placed in administration in January this year. The firm was founded in April 2009 and at the time of liquidation had two directors Daniel Clough, and IFA Christopher Paul Dwyer.

Smith, Law & Shepherds (FRN 719232) has 20 claims in progress, all for pension transfer advice. Some of these claims relate to British Steel Pension Scheme (BSPS) transfers.

At the time of liquidation in January, the IFA’s administrator estimated total assets available for creditors of the firm to be £696,837 including directors loans of £336,837 and a pre-packaged client bank sale of £360,000 in forms submitted to Companies House.

Birmingham-based County Capital Wealth Management was founded in 2007 and at the time of liquidation had one director, IFA Mark Antony Abley.

The wealth manager also traded as The Pension Review Service, Fathom until 2019.

The firm went into voluntary liquidation in May 2020.

In March the wealth manager’s administrator estimated total assets available for creditors of the firm to be £497,911. The document submitted to Companies House by the administrator on 29 March listed compensation to “consumer creditors for advice” as £650,000, leaving the firm with a deficiency of £152,189.

County Capital (FRN 463679) has 68 claims against the firm, all in progress, and all for pension transfer advice. Some of these claims also relate to BSPS transfers.