The Financial Services Compensation Scheme (FSCS) declared 14 firms, including six financial advisory firms, in default in January and February.
The move opens the door to the start of compensation claims from customers to the FSCS.
The firms declared in default included independent financial adviser and ISA manager Copia Wealth Management which was ordered by the Financial Ombudsman Service to pay compensation after giving a client unsuitable pension transfer advice.
Other financial advisory firms declared in default include Birmingham-based Inspired Wealth Limited, York-based Grosvenor Financial Consultants Limited, Leeds-based RHT Financial Services Limited, Manchester-based Sequence Financial Management Limited and Wigan-based Gardner Massey Wright IFA Limited.
Liberty SIPP was also declared in default by the FSCS after being placed into administration on 27 April last year.
Other firms declared in default include Atlas Travel Insurance Services Ltd, Pembrokeshire Mortgage Centre Limited, Red Kite Finance Limited, and Prometheus Insurance Company Ltd.
Sarah Marin, FSCS’s interim chief customer officer, said: “FSCS puts customers and their need for trust in financial services first. This focus is needed more than ever, with the increased potential for financial vulnerability as a result of the pandemic. FSCS’s protection increases consumer confidence when buying financial products and services, and our compensation helps put customers back on track if firms should fail”.
In January the FSCS said it is forecasting a levy for 2021/22 of £1.04bn, up £339m from the £700m raised the previous year due mainly to soaring numbers of claims.