The Financial Services Compensation Scheme has declared Leeds-based pension transfer adviser Gainsborough Financial Services (FRN: 145971) in default.

The FCA revoked the firm’s regulatory permissions in September 2023 after it failed to pay thousands of pounds in regulatory fees.

A default declaration is generally made by the FSCS if a firm has had valid claims upheld against it and it cannot pay compensation.

The FCA said the firm had failed to pay thousands of pounds in fee and levy invoices in recent years. Unpaid fees included an invoice dated 30 September 2020 for periodic fees and levies of £2,842.95 along with several other invoices since 2020.

The FSCS declared Gainsborough Financial Service in default this week after the first claim from a client was upheld.

The FSCS said there were five claims in total against the firm, with four still in progress. All of the claims relate to pension transfer advice but none are BSPS-related advice.

The FCA took action in 2023 after it said the firm appeared to be carrying on no Part 4A regulatory activity after losing its permissions and failing to pay fees.

The company was based in Tunstall Road, Leeds, West Yorkshire, LS11 5HL. 

According to the FCA register, there were 14 authorised individuals connected to the firm which provided advice in a number of areas including investments, pension transfers and opt out and P2P products.

The FCA register shows the firm was first authorised in 2001.