My Financial Adviser Has Gone Bust — Can I Still Claim?

When a financial adviser or SIPP operator goes out of business, many clients assume their chance to claim compensation has gone with it. In fact, the Financial Services Compensation Scheme (FSCS) exists precisely for this situation — and for losses above the FSCS cap, further routes may still be available.

Quick Answer: If your financial adviser or SIPP operator has been declared 'in default' by the FSCS, you can still claim up to £85,000 per eligible claimant — even though the firm no longer exists. The FSCS has paid over £1.2 billion in investment and SIPP claims to date. Losses above £85,000 may be recoverable through professional indemnity insurers or court action. Source: FSCS Annual Report 2024/25.

Step 1: Check Whether the Firm Is FSCS-Eligible

Not every failed firm triggers FSCS cover. The firm must have been FCA-regulated at the time of the advice, and must have been declared "in default" by the FSCS. You can check at fscs.org.uk/check-your-money or we can check on your behalf.

Step 2: Check Whether Your Claim Is Covered

The FSCS covers investment advice, pension advice, mortgage advice and SIPP operator failures — provided the firm was FCA-authorised. The FSCS does not cover unregulated introducers (e.g. cold-calling introducer firms with no FCA authorisation), though the regulated firm they were connected to may still be liable.

FSCS Compensation Limits

Financial advice and SIPP mis-selling: up to £85,000 per eligible claimant
There is no per-firm limit — if you had accounts with multiple failed firms, you can claim £85,000 from each
Losses above £85,000 require a court claim or FOS claim against connected solvent parties

What If the Firm Is in Administration But Not Declared in Default?

There is a distinction between administration (the firm is being wound up by administrators) and FSCS "default" (the FSCS has determined the firm cannot meet claims against it). Once declared in default, FSCS claims open. We monitor all current administrations and will advise you of the right timing.

Named Firms Currently in FSCS Default

Rowanmoor Personal Pensions — default December 2023 (£124m liability)
Hartley Pensions — default February 2024
Berkeley Burke SIPP — default April 2020 (£58m paid; residual claims open)
Guinness Mahon Trust Corporation — £39.7m paid

See our full failed firms list.

Can I Claim If My Adviser Is No Longer Authorised But Not in Default?

If your adviser has had their FCA authorisation removed — but has not been declared in default by the FSCS — you may still be able to bring a claim through their professional indemnity (PI) insurance, which most advisers are required to maintain after authorisation ends. We can trace PI insurers and bring claims directly against them.

Frequently Asked Questions

How long does an FSCS claim take?

The FSCS typically processes claims within 6–18 months of declaring a firm in default. Complex cases or those requiring actuarial calculations (such as DB pension transfers) may take longer.

Do I need to use a solicitor to make an FSCS claim?

No — you can claim from the FSCS directly at no cost. However, a solicitor can significantly improve the valuation of your claim and ensure you are not settling for less than you are owed, particularly for DB pension transfer losses.

What if my adviser had no PI insurance?

Adviser negligence claims can still succeed against an uninsured firm — the firm remains personally liable. Where directors have been struck off or the firm is insolvent, the FSCS is normally the only realistic route to recovery, subject to the £85,000 cap.

Can I claim against a SIPP operator that has gone bust?

Yes. SIPP operator failures (e.g. Berkeley Burke, Rowanmoor, Hartley Pensions) are covered by the FSCS up to £85,000 per eligible claimant, on top of any separate claim against the advising firm.

Talk to us

Free assessment on 01228 272 395 or start your claim online. Related: FOS vs FSCS, failed firms list, common eligibility questions.