The Financial Services Compensation Scheme, the government-backed body which compensates clients of failed regulated firms, has confirmed that it declared six financial services in default over the past two months.

Financial advice firms Holborn Assets Ltd (FRN 648817) and BSPS-linked Inspirational Financial Management Ltd (FRN223511) are both under investigation by the FSCS after going into administration in recent weeks.

Staffordshire-based pensions adviser Quadros Financial Solutions Ltd (FRN: 764760) has been declared as failed by the Financial Services Compensation Scheme.

The true cost of bad advice, and more importantly what it’s going to cost, moved into the spotlight this week with the FCA’s headline-making proposals to compel most financial advice firms, some 5,000, to set aside reserves for the cost of bad advice.