The SEC staff, in a study required by the Dodd-Frank Act, has recommended that the SEC impose a uniform fiduciary standard on both advisers and broker-dealers that provide personalized investment advice and recommendations about securities to retail customers.  The uniform fiduciary standard would require the same duty of care and loyalty currently imposed on advisers.  The study recommends that the SEC apply disclosure obligations on retail brokers similar to the ADV Part 2A and regulate principal transactions and other conflicts of interest.  The study also recommends applying broker-dealer type regulation to retail investment advisers including substantive rules for advertising and other customer communications, solicitors, supervision, licensing, and recordkeeping.

OUR TAKE:  Depending on your point-of-view, this study recommends either a “best-of-the-best” or “least common denominator” approach.  Broker-dealers would be subject to the fiduciary standard and limitations on principal transactions, while investment advisers would be treated like brokers in areas such as advertising and licensing. 

 http://www.sec.gov/news/studies/2011/913studyfinal.pdf