Staffordshire-based pensions adviser Quadros Financial Solutions Ltd (FRN: 764760) has been declared as failed by the Financial Services Compensation Scheme.

The move opens the doors to ex-clients to claim compensation from the FSCS up to a maximum of £85,000 per claim.

The FSCS said it has received nine claims so far against the firm, with five in progress, one upheld, and three rejected. It said all claims are for pensions advice relating to SIPPs.

The Burton-on-Trent firm was authorised by the FCA in 2017 but restrictions were imposed on its regulatory activities in October 2021.

According to a listing on the FCA Register dated 7 October 2021: “The Firm must immediately cease, to the extent it has not already ceased, all Defined Benefit pension transfers for which it has Part 4A permission.”

According to Companies House, the firm went into voluntary liquidation in April with Birmingham’s Sanderings LLP appointed as liquidators.

It was wound up with estimated total assets available for preferential creditors of £1, which related to its customer list.

The firm applied to cancel its authorisation in June, according to the FCA Register.

Last month it was revealed that the total levy to pay for the cost of the Financial Services Compensation Scheme is set to soar by £145m from £270m this year to £415m in 2024/25. Advisers could face a near 40% rise in their levy as a result.

FSCS interim chief executive Martyn Beauchamp said that more than 80% of the total compensation forecast for 2024/25 relates to firms that have already been declared in default.

He said: “Most of our compensation continues to be paid out for poor financial advice and for legacy insurance provider failures.”

In recent months the FSCS has been busy handling compensation claims relating to failed financial advisers and firms over poor or misleading BSPS pension transfer advice.

Forty financial advice firms hit by BSPS claims have so far failed with a further seven under investigation, the latest FSCS data shows.

Compensation costs are expected to run into the millions as many of the advice firms have failed.