New FCA chair reveals investment in tax avoidance scheme

Randell told MPs that investing in the partnership was "an error of judgment" but stressed that he had been transparent about his involvement during his interview for the FCA role.

Investors in Ingenious, which produced films in the UK, could claim tax relief for any losses incurred during production.

Randell invested in the partnership between 2006 and 2011, before withdrawing and repaying £114,000 in tax.

Nicky Morgan, chair of the Treasury Committee

, asked whether members of the assessment panel during Randell's interview were aware of his involvement, and if so, what bearing it had on their decision-making.

Tom Scholar, permanent secretary at HM treasury

, confirmed that Randell disclosed his involvement to the panel who were "content that Mr Randell had taken appropriate action, and concluded that this should not prevent him from being appointed to the roles of Chair of the FCA and PSR".

In a letter to Scholar, Randell clarified:

"I informed the panel that I had invested in a film production partnership promoted by my financial adviser in 2006, and that despite assurances from my adviser and the managers of the partnership that HMRC were content with the partnership arrangements, HMRC subsequently opened an inquiry into the partnership tax affairs.

"I also explained that I had fully settled my tax affairs in relation to the partnership, by repaying as requested by HMRC an amount of tax relief originally granted by them. I also confirmed that I had withdrawn from the partnership.

"The amount repaid to HMRC, which was not discussed at the interview, was approximately £114,000 plus interest.

"Finally, I told the panel that I considered that my decision to invest in this partnership was an error of judgment which I regretted.

"I did not elaborate on this at the interview but I regret failing to independently investigate the assurances I received that HMRC were content with the partnership arrangements."