Two investment advice firms have been declared as failed by the Financial Services Compensation Scheme.

The two firms are Worcester-based Houghton Edwards LLP (FRN 591926) and IFS Aegis Ltd (formerly Authorised Financial Advisors Ltd) (FRN 587982).

Houghton Edwards, of Friar St, Worcester, ceased to be authorised in August 2022 after being a regulated firm for just under 10 years. The FSCS said it had received six claims agains the firm, all for investment advice. The first claim was upheld last week allowing the firm to be declared as failed.

The FSCS said it had received two claims against IFS Aegis, both for investment advice, with the first upheld last week. IFS Aegis was based in Stonehouse, Gloucestershire and ceased to be authorised in April 2016.

IFS Aegis was responsible for numerous appointed rep firms including Beaufort Financial Planning (West Midlands) Limited, IFS Employee Benefits LLP, IFS Personal Financial Planning and Taylor McGill Financial Services Ltd.

The FSCS is able to pay out a maximum of £85,000 per claim.

• Meanwhile the Financial Services Compensation Scheme faces a potential payout of up to £124m after declaring collapsed SIPP and SSAS firm Rowanmoor as failed last week. The FSCS says it has so far received 1,464 claims related to Rowanmoor. If each claim is awarded the maximum compensation payout of £85,000 the bill for total claims would top £124m.