Channel One Financial Planning, one of the firms associated with claims linked to the British Steel Pension Scheme (BSPS), has been declared in default by the Financial Services Compensation Scheme.

The move opens the door for claims against the failed firm which has gone into liquidation.

Leeds-based Channel One Financial Planning also traded as Channel One Financial Services.

Corporate recovery specialists Butcher Woods in Birmingham are now handling the firm's liquidation.

Channel One is the second advice firm with links to BSPS pension transfer advice to have been declared in default by the compensation body this month.

Argent Wealth was declared in liquidation on 20 January 2022. It also traded as Orchard Financial Planners and Morley James Asset Management. 

Several other advice firms who provided BSPS transfer advice were declared in default in November.

The three firms were West Wales Financial Services Ltd, AW Dallas Financial Services Ltd and Fortuna Wealth Management Ltd.  

West Wales Financial Services was one of 10 firms first asked to halt DB transfer work by the Financial Conduct Authority due to advice given to BSPS members. It was declared in default by the FSCS in November.

West Wales Financial Services was also trading as IWA Financial Solutions and Mike Powell Mortgages.

Wolverhampton-based Fortuna Wealth was previously known as Fidelis Wealth Management Ltd and AWG Financial Ltd.

A.W. Dallas Financial Services was forced into liquidation in August after receiving 35 Financial Ombudsman Service (FOS) complaints in relation to BSPS pension transfer advice.

In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, typically a Personal Pension Plan or a Self-Invested Personal Pension (SIPP).

It was one of three choices available to British Steel Pensions Scheme (BSPS) members. The others were the new scheme (BSPS2) and Pension Protection Fund (PPF).

The British Steel Pension Scheme was restructured in 2018.

When British Steel decided to encourage workers to consider moving their pension a number of advice firms moved in but poor advice was widespread and the scandal attracted national media attention with a number of Financial Planners helping victims on a pro bono basis and leading MPs getting involved.