The Dodd-Frank Act will make it easier for dishonest advisors to hide within the system and make it more difficult for honest advisors to effectively serve their clients, a leading fiduciary consultant says.

Don Trone, president of the Leadership Center for Investment Stewards, told attendees at TD Ameritrade’s Fiduciary Leadership Symposium last week that although Dodd-Frank is supposed to restore the public's faith in the financial services industry, the act and other rules like it hurt the system.

"The principle -- We serve so others may live -- has now been superseded by the rules promulgated under the Doodle-Frankenstein Act. If you encounter any situation which is not specifically covered by the rules, you have the option of not rendering any sort of assistance," said Trone.

The point is that “best interests” is not up for debate or interpretation, Trone said. Advisors should either accept the calling, or take two steps back to make it easier for the public to identify those who are ready, willing and able to stand the watch, he added.

Trone noted that during Hurricane Katrina, most government agencies failed to fulfill their mission. "You know what those government agencies and the big banks which caused the current economic crisis both have in common? Lots of folks who can point to rules which they followed, even when they knew their actions or inactions were wrong. Too many rules are the bane to moral courage; too many rules get in the way of real leadership and stewardship," he said.

Today’s fiduciary movement should be energizing – sadly, it’s not, says Trone. "In the early years the work of the fiduciary movement was inspiring and was undertaken by those who were committed to advancing the profession. Today, the fiduciary movement is being papered over with legal opinions; it has lost its way in being an honorable and noble cause."