The Financial Services Compensation Scheme has declared Cardiff-based pension firm The London Trading Company (UK) Ltd (FRN: 678985) in default.

The business traded under the names Lontrad, Lontrad Capital and The London Trading Company.

The move opens the door for former clients of the firm to seek compensation.

FSCS said it has received 23 claims in total against the firm, all for unsuitable investment advice, mainly relating to SIPPs.

One of the complaints has been upheld, which enabled the FSCS to declare the firm in default on 10 March.

The other 22 complaints remain in progress, the FSCS said.

Companies House records show the business was incorporated in July 2014.

According to the FCA’s register, the The London Trading Company (UK) was authorised in September 2015 but went into liquidation in November 2022.

The register also reveals it also had nine other trading names between 2016 and 2019: SG Capital Management Europe, QCM, SG Capital Management, TCM Wealth Management, FX Capital, Bond Star, Crowd Star, Fintech Financial and Fintech Star.

The company last published full accounts in April 2021 for 2019-20 where turnover was reported as £882,425, gross profit as £464,784, but administrative expenses were £536,508.

That lead to a loss for the year of £61,725, compared to a £26,577 profit the previous year.

The London Trading Company (UK) was wound-up voluntarily in September 2022 with liquidators apppointed. The total assets available for potential creditors was reported at that time as £96,256.97.

At the end of last month the FSCS declared four firms in default, two with links to the British Steel Pension Scheme (BSPS).

It had previously in February defaulted a BSPS-linked wealth manager, a Scots Planner and a Kent pension transfer firm.

The FSCS also reported that a total of 13 financial firms defaulted in December and January.

FSCS protection covers money held in banks, building societies and credit union accounts. The FSCS also protects insurance, investments, mortgage advice and arranging, debt management and funeral plans.