Ethical Decision-Making in Client Transparency

Michael is a portfolio manager at a mid-sized investment firm. He recently received a large bonus due to the firm's outstanding performance. During a meeting with clients, he discovers that the firm is planning to make significant layoffs to cut costs. Michael is concerned about how this might affect his team's morale and the quality of service provided to clients. He contemplates whether he should inform his clients about the impending layoffs, believing that transparency will demonstrate professionalism. However, he worries that this information might create unnecessary panic and distrust among clients. Considering the CFA Institute's Code of Ethics and Standards of Professional Conduct, what should Michael prioritize in his decision-making process?