A Cardiff-based firm which has received eight claims against it for poor pension advice has been declared in default by the Financial Services Compensation Scheme (FSCS).
The firm David Craig has received eight claims against it, with one of these claims being upheld so far, sparking the default.
The Welsh firm was declared failed by the FSCS on Monday (September 25), though the lifeboat scheme said there is no connection to the British Steel Pension Scheme (BSPS).
The firm's listing on the Financial Conduct Authority’s (FCA) register shows it has not been authorised by the regulator since August 2017 - It started trading in 2009.
The FSCS steps in to compensate consumers when firms go bust, the body first determines that the firm has failed before it determines whether there is evidence to uphold a claim.
Last week, Mike Norris Financial Services was declared failed by the FSCS after the lifeboat scheme received a number of claims relating to unsuitable pension advice against the firm.
The company went into voluntary liquidation in September 2022 after being formally closed a month before, according to Companies House.
In 2022/23 the FSCS paid out a total of £403mn in compensation.
Overall it declared 64 firms in default in the year and completed 432 investigations into firms to establish their solvency status and confirm whether former customers would have eligible claims for compensation.
Earlier this year Sarah Marin, chief customer officer at the FSCS, said pensions products becoming more complex has led to claims becoming more complicated.
She said: "With added complexity comes added time to fully investigate the claim. This is adding time to the claims process before we even factor in the evidence gathering challenges. That’s why it is absolutely vital that we work together to share information as quickly and efficiently as possible."
tara.o'connor@ft.com
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