The Financial Services Compensation Scheme can help consumers claim up to £48,000 if they lost money dealing with 21 recently defaulted firms.
The FSCS, the statutory fund of last resort for regulated financial services businesses, declared the firms in default as they are unable, or likely to be unable to pay claims against it.
"Our primary role is to ensure the public are not left out of pocket after doing business with an authorised firm, says FSCS chief executive Loretta Minghella.
"If a firm is unable to meet claims made against it, we are responsible for stepping in."
“It is important consumers are aware of our services and that FSCS may be able to help if they have nowhere else to turn.”
The FSCS says it typically handles claims relating to advice, such as consumers losing money after being recommended an unsuitable product.
It can also compensate for loss from negligent investment management and fraud, as well as if an authorised investment firm stops trading.
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