The FSCS confirmed that the firms have been declared in default, meaning they have gone out of business and are unable to meet any claims themselves.

The move opens the door for consumers to lodge claims against firms with the compensation body.

The seven firms who have entered into default are:

• Thomas Financial Ltd (FRN 473555) The Hollies, Isca Road, Caerleon, Newport, Gwent, NP18 1QG
• MacFarlaine & Brooks IFA Ltd (FRN 612753) 651a Mauldeth Road, West Chorlton, Manchester M21 7SA
• Wealthmasters Financial Management Ltd trading as Gryphon Capital, Invictus Wealth, Sydney Charles UK (FRN 536087) Atlantic House, Charnwood Park, Bridgend, Mid Glamorgan, CF31 3PL
• Prism Independent Financial Advisers Ltd (FRN 515431) 22 Risca Road Newport Gwent NP20 4JW
• Maymont Wealth Limited formerly GWM Investment Management Limited t/a Discover Wealth (FRN 629098) 3rd Floor, 33 Bruton Street, London, W1J 6QU
• Cheshire Trafford U.K. Limited formerly Cheshire Trafford (Yorkshire) & Co. Limited (FRN 115194) 34 St. Augustines Gate, Hedon, East Yorkshire, HU12 8EX
• Temple Park Financial Services (FRN 163459) 12 Templegate Walk, Leeds, West Yorkshire, LS15 0EU

Leeds-based financial adviser Temple Park Financial Services was declared in default in July after seven claims related to endowment mortgage sales.

According to the FCA Register, the firm had 14 regulated individuals, including several CF24 pension transfer specialists, although the FSCS said there were no pension transfer claims.

The firm ceased to be authorised in 2009 and was previously authorised by FCA predecessor the FSA.

The firm, based in Templegate Walk, Leeds, had several appointed representatives including Carter Financial Planning (FRN 20616), GRF Financial Limited (FRN 224815) and Pension & Investment Centre (FRN 221960).

Cheshire Trafford U.K. Limited (formerly Cheshire Trafford (Yorkshire) & Co. Limited) was a financial advice firm based in Kent. The FSCS has received four claims against the firm relating to pension transfer and investment advice. All of the claims are still in progress.

The firm has not been authorised since 27 January when its authorisation was cancelled by the FCA. The firms’ authorisation was cancelled when it went into administration. The FCA register lists 36 people previously connected to or working for the firm.

Maymont Wealth Limited (formerly GWM Investment Management Limited, Discover Wealth Limited, Guardian Lifestyle Mortgages Limited, Keystone Independent Limited) was London-based and went into liquidation in 2015.

The FSCS has received seven claims relating to pension transfer and SIPP advice. All of the claims are still in progress. 

The FCA lists 12 individuals working for or connected to the firm.

Maymont was subject to an asset restriction in April 2021 when it was ordered not to sell or transfer any assets or funds away from the company without the prior written consent of the FCA.

Cardiff-based Prism Independent Financial Advisers entered FSCS default on 11 July following voluntary liquidation in December 2020.

The FSCS has received 53 claims so far against Prism. Some 50 claims are in progress, 2 have been rejected, and 1 upheld. All claims are pension transfer related.

The firm was founded in September 2000 by Martin Evans and Andrew Charles.

Wealthmasters Financial Management entered default on 11 July, and is no longer trading.

So far the FSCS has received 58 claims against the firm. Some 54 are in progress, 3 have been rejected, and 1 has been upheld. All claims are pensions and investment advice related.

The Bristol-based firm also traded as Gryphon Capital, Invictus Wealth, and Sydney Charles UK.

Both firms were associated with claims related to British Steel Pension Scheme (BSPS) members.

Thomas Financial was a financial advice firm based in Newport, Gwent. There have been two claims against the firm so far – one rejected, one upheld and triggering the default, the FSCS said. Both claims were for pensions advice, with the upheld claim for a pension transfer.

The firm had been active since 2007 and also traded under the names Steve Thomas Financial Services, Chepstow Financial Services and Any Mortgage Matters. It had also previously traded under the name Private Planning Solutions.

The director of the firm was Stephen Glyn Thomas, a member of the Chartered Insurance Institute who is a former investment adviser with Quilter Financial Planning Solutions. According to the FCA Register, Mr Thomas has also more recently worked for True Potential Wealth Management.

MacFarlaine & Brooks IFA entered default in June, with 8 claims for unsuitable advice relating to pensions and investments.

Two of the claims against MacFarlaine & Brookes have been rejected, one upheld, and the remaining five are in progress, the FSCS said.

The firm has not been authorised by the FCA since December 2020.

The firm was founded in November 2013 and was dissolved on 17 January 2023. Companies House first notified that it planned to strike the company off its register in April 2021.

MacFarlaine & Brooks was a full-service advice firm specialising in pensions, investments, protection and mortgages. It had assets of £20m under management on behalf of over 1,000 clients.

Lila Pleban, chief communications officer at the FSCS, said: "In the last financial year, FSCS paid out over £400m in compensation, helping almost 68,000 people get back on track financially. We know it's stressful when a firm goes bust owing its customers money but our expert claims handlers do everything they can to make our free compensation process as easy as possible."

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.