What constitutes "material" information that must be disclosed to clients?

Material information that must be disclosed to clients is defined as any details that could influence investment decisions. This means information that, if known, could affect a client's decision to buy, sell, or hold an investment. The emphasis is on the potential impact that this information has on the client's decision-making process regarding their financial investments.

While market trends, general company performance updates, and stock market predictions can provide useful context, they do not necessarily have the direct impact on a client's specific investment decision that constitutes materiality. For example, while understanding market trends might be beneficial, this information alone may not be enough to change how a client would act with their specific investments. Similarly, general performance updates may not provide the precise insights needed to guide an investment decision. Therefore, it is the specific details that have the power to influence how clients perceive their investments that are considered material and necessary for them to make informed choices.