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On the TSIM server run the command:
pw lic list
If it comes back with:
Failure to connect to server
Then the TSIM has not properly started yet. The best course of action would be to wait until it has fully started, which is when pw lic list will return the license output.
The TSIM should then connect in TSPS.
Thanks for the above response - note for anyone else running this command, it must be in a privileged command prompt.
I have now resolved this issue through BMC support - a restart of the Infra Mgmt System as well as a TSPS cache flush seemed to do the trick for anyone that may have this issue in the future