The declaration of default on the firm opens the door to former clients with valid claims to seek compensation of up to £85,000 per claim.

The FSCS told Financial Planning Today it has received 44 claims against Abbey Lane for pension transfer advice, with one claim having been upheld - triggering the default declaration.

One claim has been rejected while the other 42 remain in progress.

The compensation body confirmed it had received complaints against Abbey Lane linked to the British Steel Pension Scheme (BSPS).

The FCA Register shows that the firm is in an insolvency process. That means it remains authorised and has to meet the regulator’s standards.

On the firm’s website it states: “The company has ceased to trade and Roderick Graham Butcher of Butcher Woods was appointed Liquidator on 21 March 2023.” It was placed under investigation by FSCS at the same time.

According to Companies House records, the firm had £60,641.64 of total assets available for potential creditors at the time of its liquidation, which was reduced to £56,290.43 after £4,351.21 was earmarked to repay to HMRC.

The records show that the company had four shareholders at the time of its liquidation, named as Scott Leigh, Vanessa Leigh, Alan Maguire and Zoe Maguire, all of Sheffield.

The firm has had several restrictions placed on its activities since February 2023, according to the FCA Register. Chiefly it cannot hold and cannot control client money. It is also not allowed to make unsolicited settlement offers to consumers and must comply with the BSPS redress scheme for any client that had previously accepted unsolicited settlement offers.

The Register shows that the firm received authorisation in April 2015. It previously traded as Medishield Health from November 2014 to June 2015 and also traded as Abbey Annuities from November 2014 to February 2017.

More than 40 financial advice firms hit by BSPS claims have so far failed with several more under investigation, latest FSCS data shows.

Claims relating to the advice firms are now being handled by the FSCS. Total compensation costs are expected to run into the millions. Many advisers connected to BSPS failed firms have been banned or fined or both.

BSPS claims arise from members of the British Steel Pension Scheme who were advised by the advice firms to transfer their pensions to another provider. In many cases the advice was poor or misleading, the FCA has said.

Another BSPS-linked firm was declared in default today (25 March), Aqua Financial Services Limited of Cheadle in Cheshire.

Earlier this month the FSCS declared Swindon-based advice firm AP Financial Services UK Ltd in default after upholding a pension transfer complaint against the firm.