Dual trading involves brokers registering with one mortgage network under their personal name and then with another under their company name.
Speaking under condition of annonymity, the source said the practice could lead to confusion for clients and complications in the event of mis-selling allegations.
“The FSA register is simply not picking this up at the moment and I think this is something which needs to be investigated,” he said.
The FSA’s rules state: ‘A firm must ensure that, if appointing an appointed representative (other than an introducer appointed representative) to carry on any of the following regulated activities, its written contract prohibits the appointed representative from carrying on any of the specified activities as an appointed representative for another firm.’
Tony Jones, managing director of Pink Home Loans, commented: “We have not come across this ourselves but I think it would be frowned on by the regulator.
“We have firms who belong to other networks for financial services like life and pensions but belonging to two mortgage networks could lead to client confusion.”
The source also expressed concern that brokers rejected as ARs by networks were turning up on the FSA register as directly authorised.
