WASHINGTON — An amendment to financial regulatory reform legislation that would impose a broad fiduciary duty on financial services firms when they give advice and recommendations to public entities and pension funds is pitting dealers against advisers in the municipal market.

Advisers hail the amendment, which was sponsored by Sen. Barbara Boxer, D-Calif., saying that it will bring long-needed protection to issuers who are drawn into a relationship of trust and confidence with dealers.

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