From WSJ:

Currently, registered investment advisers must instruct clients based on the belief that their recommendations are in investors’ best interests. Broker-dealers are held to a lesser standard, required only to make suitable recommendations to investors.

Investment Advisors have a fiduciary responsibility, Broker-Dealers would not.

An Investment Advisor is:

As defined by the Investment Advisors Act of 1940, any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications.

A Broker-Dealer is:

Investopedia explains Broker-Dealer
Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and trades for his or her own account. Because most brokerages act as both brokers and principals, the term broker-dealer is commonly used to describe them.

Broker – 1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.

2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

Dealer – What Does Dealer Mean?
1. An individual or firm willing to buy or sell securities for their own account.

2. One who purchases goods or services for resale to consumers.

The race to the bottom continues.

In a related note about watering down the financial reform we need, from Business Week:

Financial services industry lobbyists have fought the proposal in meetings with lawmakers, saying they oppose separating bank oversight from consumer protection. The Senate panel may release legislation next week that includes a watered- down version of the plan.