The Financial Services Compensation Scheme has declared Bailey Richards Wealth Management (FRN: 583487) in default.

It is one of the companies associated with claims regarding the British Steel Pension Scheme (BSPS).

The move opens the door for clients of the wealth manager to seek compensation.

The Newcastle-based firm was incorporated in May 2012 but lost its FCA authorisation in July 2020 and went into administration in April 2022 after moving its registered office to Solihull.

The FSCS said it currently has nine claims for pension transfer advice against Bailey Richards Wealth Management Limited, with one being upheld, triggering the default declaration.

The FSCS has already this year declared several other firms in default involved in pension transfer advice, including some BSPS-related.

Many of the firms are financial advisers, wealth managers and a small number describe themselves as Financial Planners.

The firms include Better Retirement Group, Aquila Financial Services, Cadogan Asset Management, Corporate Financial Planning, Nurture Financial Planning, Plan Your Retirement Limited and Premier Wealth Management.

Earlier this month the FCA warned that at least 15 firms are targeting BSPS victims with unsolicited and misleading offers of redress.

The regulator said the offers could cause further harm to BSPS victims who may get less than they deserve.

The watchdog issued the warning ahead of its official BSPS redress scheme which starts on 28 February.

In January the FCA set out concerns about an “emerging practice” where some firms were making unsolicited offers to former BSPS members.

Members of the BSPS were targeted several years ago by often unscrupulous advice firms encouraging them to transfer to other pension schemes despite the damaging effect this would have on their pension benefits in many cases.

The advice they received may not have been the best advice for them, the FSCS said.

It has reminded victims of firm failure that it is independent, its service is free to consumers and customers keep all the compensation they are owed when they claim through the FSCS.

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.

Fiona Kidy, FSCS's chief financial officer said: "Customers of financial firms that have failed or are no longer trading can make a claim to us and we'll do all we can to compensate them. Our service is free, and customers keep all the compensation they're due if they claim directly with us. So far this financial year FSCS has handled more than 90,000 claims."