If a financial adviser firm closes, first establish whether the closure is orderly, the firm has lost authorisation or it has entered insolvency. Then identify who holds your pension or investments, stop unsupported adviser charges, obtain records and check complaint or FSCS routes.
Quick answer
Closure of an advice firm does not automatically mean the underlying pension, platform or fund has failed. Check the FCA Register and official notices, contact the product provider, identify any insolvency practitioner and use FSCS directly if the failed authorised firm cannot meet an eligible claim.
Key points
- An adviser firm and the provider holding assets are usually different entities.
- Orderly closure, cancellation of authorisation and insolvency are different events.
- A no-longer-authorised firm cannot continue regulated activities requiring permission.
- Adviser charges should not continue without the agreed service.
- Complaints and records remain important after closure.
- FSCS may cover eligible investment or pension-advice claims up to £85,000 per eligible person, per firm.
Orderly closure, lost authorisation and insolvency
An orderly closure may involve the firm stopping new business, arranging a transfer of clients and cancelling authorisation after regulated work ends.
A firm shown as “no longer authorised” cannot continue regulated activities requiring that permission. The status does not by itself prove fraud or insolvency.
In administration or liquidation, an insolvency practitioner manages the process. The FCA continues supervising a regulated firm in insolvency while it remains authorised or registered.
Check official FCA notices, Companies House information and communications from the appointed practitioner.
What happens to pensions and investments?
Advice firms often do not directly hold client assets. Pensions may be held by a pension provider, investments by a platform or custodian, and funds managed by separate companies.
Therefore, failure of the adviser does not automatically mean the assets have disappeared. Contact the provider using independent details and confirm ownership, access and charging.
Some vertically integrated firms perform several roles. Identify the legal entity responsible for each function rather than relying on the group brand.
If client money was held or fraud is suspected, the position can be more complex and should be investigated promptly.
First checks to make
- Search the firm on the FCA Register.
- Read FCA notices and warnings.
- Verify any insolvency practitioner.
- Contact pension and investment providers.
- Check current account access.
- Review recent statements and deductions.
- Save adviser reports and correspondence.
- Check whether another firm claims to have acquired the client book.
Do not use telephone numbers in an unexpected closure email until independently verified.
Ongoing adviser fees and service
Identify any adviser charge deducted from products. Ask the provider whether it will stop automatically and provide written cancellation if necessary.
Platform and fund charges may continue because the underlying service remains in place.
If fees were taken for a service not delivered before closure, this may form part of a complaint or claim.
Keep statements showing dates and amounts.
Records and unfinished transactions
Obtain the client agreement, fact-find, suitability reports, risk assessments, review records and transaction instructions.
If a transfer or withdrawal was in progress, contact the provider directly. Do not assume the transaction will complete correctly after staff leave.
The insolvency practitioner or acquiring adviser may hold records. Data-protection duties can continue, but access may take time.
Keep evidence of instructions and deadlines.
Existing and new complaints
If the firm can still handle complaints, use its process. If an insolvency practitioner is appointed, follow official instructions for creditors and complainants.
FOS may be able to consider complaints against an authorised firm depending on status and jurisdiction. If the firm cannot meet redress, FSCS may become relevant.
Do not miss complaint time limits while waiting for a business sale or insolvency update.
When FSCS may compensate
FSCS may consider claims when an authorised firm has failed and cannot meet an eligible civil liability.
For investment advice and bad pension advice involving firms that failed after 1 April 2019, the limit is generally up to £85,000 per eligible person, per firm.
The limit is not a guarantee. FSCS assesses whether the claimant, firm, activity and loss are eligible.
Poor investment performance alone is not covered. The claim usually needs wrongdoing such as unsuitable advice and a compensatable loss.
Submit directly to FSCS without paying a claims company.
Finding a replacement adviser
You may need a new adviser for ongoing planning, but do not accept the first firm that contacts you claiming to have taken over.
Verify the acquiring or replacement firm through the FCA. Ask whether existing products can remain and what the takeover review costs.
A new adviser should examine existing arrangements before recommending transfers. Closure of the old firm is not itself a reason to move every product.
If no advice is needed immediately, providers may allow direct servicing while you consider options.
Scams following firm closure
Fraudsters may claim to recover money, transfer assets or represent the liquidator. They may know the firm’s name and client details.
Verify every contact independently. Insolvency practitioners have official records, and FSCS does not require payment to submit a claim.
Never give remote access to your device or transfer money to “unlock” compensation.
Firm closure checklist
- Confirm the exact legal firm and status.
- Identify the insolvency practitioner if any.
- Contact product providers independently.
- Map who holds and manages assets.
- Stop unsupported adviser charges.
- Save reports, agreements and statements.
- Check unfinished transactions.
- Preserve complaint deadlines.
- Check FOS and FSCS routes.
- Verify any replacement adviser.
Frequently asked questions
Will I lose my investments if my adviser closes?
Not automatically. The assets are often held by separate providers or custodians. Confirm the legal structure.
What does no longer authorised mean?
The firm previously had authorisation but can no longer carry on regulated activities requiring it.
Will adviser charges stop automatically?
Not always. Contact the provider and give written instructions where necessary.
Can FSCS cover bad advice?
Potentially, if the authorised firm has failed and the claim is eligible, generally up to £85,000 per eligible person, per firm for relevant advice claims.
Do I need to transfer to the firm buying the client book?
No. Verify the new firm and compare the service before agreeing.
Should I pay a company to make an FSCS claim?
FSCS accepts direct claims free of charge. A representative is not normally necessary.
Client-book sales and servicing transfers
An adviser firm may sell or transfer its client book. The new firm should explain its identity, regulatory status, service and charges. A commercial transfer does not force the client to accept ongoing advice.
Check whether authorities and data have transferred lawfully and whether a new agreement is required. Do not assume old fees or review promises continue unchanged.
Tax and transaction deadlines
Firm closure can interrupt planned withdrawals, pension contributions or transfers. Contact providers directly before tax-year or retirement deadlines and keep evidence of instructions.
How orderly wind-down should differ from failure
In an orderly wind-down, the firm plans how clients, records, complaints and ongoing services will be handled. It may transfer servicing to another firm, complete existing work or help clients move.
In a sudden failure, access to staff and records may be disrupted. An administrator or liquidator may need time to understand the business.
The consumer’s immediate steps are similar—verify, preserve records and contact providers—but the timetable and complaint route can differ.
What happens to client data?
Client records may be retained by the failed firm, insolvency practitioner or acquiring business. Data-protection duties do not disappear simply because the firm closes.
Ask who controls the data, how to obtain copies and whether information will be transferred to a replacement adviser.
Be cautious about unsolicited contacts that appear to know confidential details. Data knowledge does not prove authority.
Product access without an adviser
Providers may allow clients to manage accounts directly, but services and charges can change. Ask about online access, withdrawals, investment changes and support.
Some adviser platforms are designed mainly for intermediaries and may offer a restricted direct-client experience. This does not necessarily require an immediate transfer, but future servicing should be planned.
Confirm who will provide regulatory notices and statements.
Claims where several firms have failed
A pension or investment arrangement can involve more than one failed firm. The adviser, SIPP operator, investment provider or discretionary manager may have separate responsibilities.
FSCS may assess claims against each relevant failed authorised firm, but compensation limits and loss calculations are complex. Double recovery is not permitted.
Provide a clear timeline and identify the alleged failing of each firm.
Creditors and compensation claimants
An insolvency practitioner may invite creditors to submit claims. This process is separate from an FSCS claim, although the two can interact.
Follow official instructions and keep copies of proofs of debt. Do not assume that registering as a creditor automatically submits an FSCS claim.
FSCS may pursue recoveries after paying compensation under its rules.
Long-term monitoring after closure
Continue checking provider statements, fees and contact details. The need for advice may change after the immediate closure is resolved.
Keep closure notices and claim decisions permanently with the product records. They may be relevant to later tax, transfer or complaint questions.
Worked example: adviser failure but platform remains
A client’s adviser enters liquidation, but the investments remain on an independent regulated platform. The client should confirm access with the platform, stop the failed firm’s adviser charge and obtain advice records from the liquidator.
The client does not need to sell the investments merely because the adviser failed. They can appoint a new adviser, manage the platform directly if permitted or wait while immediate needs are assessed.
If earlier advice appears unsuitable, the client can investigate FOS or FSCS routes depending on the firm’s status and claim eligibility.
Worked example: client book transferred
A retiring adviser sells the client book to another authorised firm. The new firm contacts clients and proposes its ongoing service.
The client should verify the new firm, compare charges and understand whether existing assets will be reviewed or moved. The client can decline the new service and make another arrangement.
Any old complaint remains connected to the firm responsible at the relevant time, although a successor may handle it under the transfer.
Worked example: suspected missing client money
If statements or provider checks suggest money was not placed where expected, the issue is more urgent than an ordinary servicing change.
Contact providers, the bank, insolvency practitioner and FCA using official details. Preserve payment evidence and report suspected fraud.
FSCS eligibility can depend on how the firm held or handled the money and the regulated activity involved.
Communications from an insolvency practitioner
Official notices should identify the appointed practitioner, firm and case details. Verify the appointment through recognised professional and Companies House sources.
Follow deadlines for creditor claims or document requests. Keep copies of submissions and acknowledgements.
An insolvency practitioner does not replace FOS or FSCS, but may provide records and information needed for those processes.
Deciding whether immediate advice is needed
Immediate advice may be important where withdrawals, tax deadlines or complex products require action. In other cases, the safest step can be to secure access and gather records before selecting a new adviser.
Do not let a replacement firm use closure to create unnecessary urgency. Verify and compare it in the same way as any other adviser.
Sources and further reading
Important: This guide provides general educational information. It is not personal financial or legal advice and does not determine whether a complaint or compensation claim will succeed.
Reviewed by: Financial Adviser Hub Editorial Team. Last reviewed: June 2026.