The decision by the FSCS opens the door to clients of the pension transfer firm to submit compensation claims.

Portal Financial went into compulsory liquidation on 18 January following a string of complaints.

The FSCS said that the firm was previously under investigation but was declared in default by the FSCS yesterday as the first valid claim was upheld.

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The FSCS says that there are currently 291 claims against the firm. One of the claims has been successfully upheld, two have been rejected and 288 are being processed.

The compensation body said that the majority of claims are pension transfer advice-related with “a very small number” connected to British Steel Pension Scheme transfers.

London-based Portal Financial first became authorised in 2009 and traded under a number of previous names. It initially traded 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 in the last two years.

• The FSCS has also this week declared two more adviser firms as under investigation: Green Gem Financial Ltd (FRN 400488) and Wealthmasters Financial Management Ltd (FRN 536087). The FSCS has declined to provide further details until claims are fully investigated.