The FSCS said it is now considering claims against the two firms.

It said all claims will be assessed on a case-by-case basis, to determine whether they are eligible for compensation.

As part of its investigations, the FSCS said it will consider whether the firms can meet claims made against them.

Cheshire-based Holborn Assets became authorised in February 2015 and entered administration on 24 October. The FSCS said: “Holborn Assets has gone into liquidation and we believe there are likely to be a small number of claims from former clients for compensation for unsuitable advice.”

According to the FCA Register it had been trading under six different names, starting with Holborn Assets which, according to Companies House records, was incorporated as a business in 2014. It added the name Holborn in 2018 and then Pension Transfer Experts in 2020. In 2021 it added the name James Parker Financial. In 2022 it added two trading names: Neo Financial Planning in February and Global UK Wealth in October.

Of five officers listed at Companies House records for Holborn Assets, only one had a London correspondence address, with one listed in the Turks and Caicos Islands and three others in the United Arab Emirates.

Its last accounts, published at the end of 2022, reported that the company’s principal business was investment advice and DB pension transfers. The accounts revealed that the business made a loss for 2022 of £37,417, despite a turnover of £1.3m and gross profits of £827,253. The loss was down to administrative expenses of £864,670.

In 2021 the firm lost £168,349, on a turnover of £1.4m and gross profits of £922,892. Administrative expenses in 2021 topped £1m, coming in at £1,091,241, according to the published accounts. Brighton administrators Quantuma Advisory were appointed on 7 November.

Huddersfield-based Inspirational Financial Management became authorised in July 2003 and entered administration on 30 November. The FSCS said Inspirational Financial Management was taking part in the FCA’s redress scheme for former BSPS members, “so we expect a number of BSPS claims to come to us.”

From 2006 the firm also traded under the names IFM Retirement Solutions and IFM Mortgage Solutions, according to the FCA Register. From 2019 to 2022 it traded under the name Lifetime Solutions. It had previously traded under the name Will Writers (UK) Ltd between 1998 and 2002, according to Companies House records.

On its website it said: “Our team offers bespoke financial planning and financial advice to people in Huddersfield and throughout the north of England.” It had its assets restricted by the FCA in November 2020.

Inspirational Financial Management accounts for the financial year ending July 2022 reported that total assets of £412,507 as at July 2021 had turned into a liability of £495,129 a year later. Leeds administrators Insolvency One Limited was appointed on 30 November, prompting the FSCS investigation.

Inspirational Financial Management Ltd is one of the firms associated with BSPS claims. Some 40 financial advice firms hit by BSPS claims have so far failed with a further seven under investigation, latest FSCS data shows. Claims relating to the 40 advice firms which went out of business before 28 February are now being handled by the Financial Services Compensation Scheme.

Compensation costs are expected to run into the millions.