When you receive financial advice, whether for pensions, investments, or mortgages, it’s easy to assume that the firm you trusted will always be there.
But that’s not always the case.
Every year, financial advice firms across the UK close, dissolve, or enter liquidation. And when they do, it can directly affect your ability to raise a complaint or recover losses if something has gone wrong.
Recently, we’ve added several firms to our website that are no longer operating, including:
- Nexus Independent Financial Advisers Ltd
- MHMW1 Ltd (formerly M L Robinson Financial Advice Ltd)
- Logic Investments Ltd
- Hanson Financial Partners Ltd
- G60 Ltd
- WJR Financial Solutions Ltd
- Donre Advisory Ltd
These are just a handful of examples, but they highlight a much bigger issue.
Why This Matters More Than You Might Think
If you received advice years ago, you may not have thought about it since. But financial products, particularly pensions and investments, can take time to show their true performance.
By the time concerns arise, the firm that gave the advice may no longer exist.
And that changes things.
1- Your route to making a complaint may change
If a firm is still active, you typically complain directly to them first.
But if they’ve closed, your claim may need to go through the Financial Services Compensation Scheme (FSCS) instead.
2- There are time limits to be aware of
Even if a firm has gone out of business, strict deadlines can still apply to when you can bring a claim.
Many people miss out simply because they didn’t realise something was wrong early enough.
3- Records can become harder to access
When firms close, accessing advice files, documentation, or even confirming what happened can become more difficult.
This can make building a claim more complex, but not impossible.
If my financial adviser relationship has been transferred to another firm, who is my claim against?
There are different ways in which client relationships or client bases are transferred between organisations.
Regardless of whether you were ‘sold’ or simply moved to another firm, how the transfer was recorded affects who is liable for what.
Typically, most transfers between firms happen under something called ‘Novation’, this is a re-assignment of rights, dated at the time of transfer. This means that the responsibilities of the new adviser only start from the date of the novation, i.e. that the previous advice still sits with the previous adviser.
The can have massive implications if not recognised early, as if your claim is against a former advice firm who is no longer trading, then you have a limited amount of time to make a claim against that advisers Professional Indemnity Insurer, otherwise you are limited to a making a claim against the FSCS which limits the value of your claim significantly and can mean you do not get the full financial redress you are entitled to, you can learn more on our article why acting now matters.
Common Situations We See
We often hear from people who:
- Transferred out of a final salary pension and are now worried about the outcome.
- Were advised to invest in higher-risk products without fully understanding them.
- Took out interest-only mortgages or unsuitable lending arrangements.
- Haven’t reviewed their financial decisions in years.
- Have been paying higher fees than they should have done for extended periods of time.
- Clients who were unaware they no longer have a financial adviser (orphaned clients).
In many cases, they only start asking questions when something doesn’t feel right.
A Simple Check You Can Do Today
If you’ve received financial advice in the past, it’s worth asking:
- Is the firm still authorised and trading?
- Has the company name changed?
- Has it been dissolved or gone into liquidation?
Even a quick check can give you clarity, and potentially uncover issues you didn’t realise were there.
What If the Firm Has Closed?
If the firm that advised you is no longer in business, you may still be able to claim compensation.
This is where the FSCS can step in, but the process isn’t always straightforward.
That’s why many people choose to get help understanding:
- Whether they have a valid claim
- What evidence is needed
- Which route applies (either via the firm or the FSCS)
- How much they may be entitled to recover
Why Ongoing Awareness Matters
Financial advice isn’t just a moment in time, it can have long-term consequences.
Checking in on past advice, even years later, isn’t about dwelling on the past. It’s about protecting your future.
Because if something wasn’t right, you deserve the chance to put it right.
Concerned About Advice You’ve Received?
If you’re unsure whether advice you received in the past was suitable, or whether the firm is still operating, it’s worth getting clarity.
At Claim My Loss, we can help you understand your position and guide you through the next steps.
Learn more about our expert support using the link that helps you raise a claim against financial advisor.
