Two friends lost more than £650,000 of their retirement pots as a result of the recommendations given by their financial adviser, who has now liquidated his firm, Knightsbridge Financial Management, and set up a new business, Knightsbridge Personal & Corporate Solutions.

The adviser, Terence Brimble, received fees totalling more than £100,000 over five years from Jackie Naghten and Louise Brassey, who were then his clients.

According to The Times, Naghten lost £130,000 after being advised to invest in a fund she didn’t know was high-risk.

After the investments he recommended went badly wrong, however, the pair had to resort to the Financial Services Compensation Scheme (FSCS) which refunded them just £50,000 each – the maximum it is allowed to pay.

Chairman of the Commons Work and Pensions Select Committee Frank Field urged the FCA to get “a grip on this scandal now”.

“Cheated pension savers – as well as reputable independent financial advisers who shoulder the cost of compensation levies – will be outraged at any possibility of firms being able to avoid responsibilities by going down this liquidate-and-reincarnate road.”

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