F.C.A chair elect admits error of judgement over tax avoidance vehicle

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The logo of the new Financial Conduct Authority is seen at the agency's headquarters in the Canary Wharf business district of London...The logo of the new Financial Conduct Authority (FCA) is seen at the agency's headquarters in the Canary Wharf business district of London April 1, 2013. The Financial Services Authority (FSA) has been scrapped from April 1 amid reforms to fix a supervisory system criticised for failing to spot the financial crisis coming, forcing Britain to bail out banks. Two new bodies will replace it - the FCA and the Prudential Regulation Authority. REUTERS/Chris Helgren (BRITAIN - Tags: BUSINESS POLITICS LOGO)

The incoming chair of Britain’s Financial Conduct Authority has admitted an ‘error of judgement’ after investing in a tax avoidance vehicle.

Charles Randell is appearing before the Treasury Committee right now, and revealed that he made a mistake by putting money into the Ingenious Film Partners 2 scheme.

Ingenious Film Partners 2 was a film production partnership which proved popular with many celebrities and sports stars, such as David Beckham and Wayne Rooney. It used tax breaks designed to encourage films to be made in the UK. Those who put money into the scheme could claim tax relief against film production losses.

Randell has admitted that he failed to sufficiently investigate the situation, when he was told by his financial advisor that HMRC had said the scheme was acceptable. He invested in the scheme between 2006 and 2011.

He told the committee that it was an “error of judgement” not to investigate these assurances.