City watchdog urged to investigate football ‘mini-bond’

The City watchdog has been asked to investigate a “mini-bond” firm backed by ex-England footballer Peter Reid after a promotional video surfaced in spite of a marketing ban.

The company, Bentley Global, had posted a video on YouTube promoting its mini-bond, which was only taken off the website this month. The marketing of mini-bonds to DIY investors has been banned since January 2020.

Tory MP Kevin Hollinrake has urged the watchdog, the Financial Conduct Authority, to intervene, after the video was sent to him by researcher Alex May. “These mini-bonds are not supposed to be marketed directly to DIY investors,” Mr Hollinrake said.

The plea comes after a spate of similar firms, such as London Capital & Finance, collapsed. Bentley Global, which used the money to make bets on football games, has raised almost £10m from investors since February 2018. It had paid out interest of between 12pc and 20pc per year, but has not made a payment since March 2020, when sporting events were either halted or played without spectators.

Last month, it asked investors for more time so it could avoid administration. The firm’s founder, Alan Bentley, said the video was taken down this month at the request of investment firm Bluewater Capital, the bond’s trustee. The video had contained a message suggesting Bluewater Capital, which is an FCA-registered firm, had approved the video.

However, Bluewater founder Henry Porter told Telegraph Money the firm had removed its approval of Bentley Global promotions in September 2018. Minibonds are not covered by the Financial Services Compensation Scheme.

Mr Bentley told this newspaper he was unsure whether the video would legally be classed as marketing.

However, he said investors had to go through a strict process, and declare they were qualified to invest, before handing over their savings.

If investigated, Mr Bentley said the FCA would discover no wrongdoing.

He said investors would receive the money they were owed and that early investors saw two years of regular payments before the pandemic began.

He said the majority of bondholders backed his decision. Reid, who was capped 13 times for England, is listed on the company’s website as director of football, but declined to comment when asked about his involvement.

The FCA declined to comment.

Peter Reid playing for England at the 1986 World Cup. He is listed as director of football at Bentley Global