Honister Capital has gone into administration leaving its 900 self-employed financial advisers unable to advise clients.
The administration also affects Burns Anderson, Sage Financial Serviecs and Honister Partners.
The reason for the administration is the cost of Professional Indemnity insurance which the firm says has risen to 'unsustainable' levels, driven by large claims on historic business and wider industry issues.
The group tried to arrange a sale to a third party but did not manage to achieve one.
Honister was set up in 2009 when the businesses were purchased from The Money Portal Ltd. The firm had over 900 self-employed financial advisers and 190 staff employees in its Bristol, Hull and Macclesfield offices.

International accounting firm Grant Thornton has been named as the administrator for the group.
Nigel Morrison of Grant Thornton said: "It is unfortunate that the only course of action possible in this situation for the group is an orderly wind-down.
"The group will not be trading in administration and members of the network will not be able to offer financial advice to clients. No customer should be disadvantaged as the group does not hold client monies.
For more information on the administration, advisers are asked to contact a helpline on 01482 385385 / 01625 667000