The FSCS has declared pension transfer adviser Portal Financial Services LLP (FRN501272) as failed after the firm went into compulsory liquidation following a string of complaints.
The firm, hit by a number of BSPS-related complaints, went into compulsory liquidation on 18 January.
The London-based firm first became authorised in 2009 and traded under a number of previous names.
The firm traded originally as Portal Financial Services LLP from 2009 to 2016, then used other trading names including Portafina and Portal Financial before returning to its original name from 2021.
The FSCS said that Portal is one of a number of advice firm associated with British Steel Pension Scheme (BSPS) claims and was also responsible for other defined benefit transfer advice related to other occupational pension schemes.
In 2017, after British Steel decided to close its pension scheme, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, particularly Personal Pension Plans or a Self-Invested Personal Pension (SIPP). Many were targeted by advisers who transferred their pensions.
Much of the BSPS transfer advice was seen as poor, resulting in a national outcry over the failure of financial regulation to protect the steel workers. Following the BSPS scandal a large number of advice firms have failed, some involved in BSPS cases and others for different pension transfer cases.
Last week the Financial Services Compensation Scheme declared five pension advice firms as failed - four of them for pension transfer advice complaints. At least three of the firms provided advice to British Steel Pension Scheme (BSPS) victims.
One of the biggest failures was Better Retirement Group which has been hit with 217 claims, many for pension transfer advice including BSPS claims. So far nearly a dozen advice firms have failed this year.
The FSCS told Financial Planning Today that its investigations into Portal Financial Services were at a relatively early stage. The FSCS said although the firm has failed and entered compulsory liquidation, the FSCS has only just opened to claims. As a result the firm has not yet been declared in default. A declaration of default is needed for the FSCS to open the door to compensation payments.
