The British Financial Services Authority yesterday announced its second inquiry into Chelsea Village, the group behind Chelsea Football Club, in less than a month.

The regulator is understood to be focusing on dealings related to a Guernsey-based trust shareholder, Swan Management Services, which until last year had a 20 per cent stake in Chelsea.

At the beginning of July, the authority also initiated an inquiry into unusually heavy dealing in Chelsea shares just ahead of the announcement that the club was to be sold.

A list of eight names - private companies and individuals - has been sent to the company and its advisers. The most recent line of questioning came as a surprise as there has been speculation about the ownership behind the trust for some time.

Mr Ken Bates, the colourful owner of the club who held just under 30 per cent of the company and who recently sold out to Mr Roman Abramovich of Russia, has previously denied any link.

However, curiosity was revived when Mr Abramovich was able to take control with just over 50 per cent of the company without any discussion with the shareholders involved.

The FSA said it was looking into "the nature and status of certain shareholdings in Chelsea Village plc in the period preceding the announcement of the bid".

It said its action followed "the receipt of information from a number of sources suggesting that the publicly disclosed shareholdings of certain parties may have been inaccurate". It added: "The FSA is concerned that, as a consequence, the market may have been misled as to the true ownership of Chelsea Village."

The traditionally secretive regulator also took the unprecedented step of giving maximum publicity to its inquiry before it spoke to the company or its advisers. - (Financial Times Service)