Ethical Decision-Making: Integrity of Capital Markets

John Smith, a portfolio manager at a well-respected investment firm, recently learned about a new technology firm that is set to release a groundbreaking product. He comes across non-public information that suggests this product will significantly outperform competitors and likely lead to substantial profits for the company. During a client meeting, one of his clients asks about potential investment opportunities in the technology sector.

While John is excited about the prospect of the new product and understands its potential impact on the stock price, he recognizes that the information he possesses is non-public and material. He faces a decision regarding whether to share his insights with his clients or keep the information confidential to maintain market integrity.

Discuss the ethical considerations John must take into account while making his decision. What are the implications of his actions on the integrity of capital markets? Provide a detailed analysis of how John should approach the situation, referring to relevant CFA Institute standards.