Ethical Decision-Making in Capital Markets: Proprietary Model Disclosure

As a portfolio manager at a large investment firm, you have developed a proprietary quantitative model that forecasts stock price movements with a remarkable accuracy of 85%. This model relies on analyzing vast datasets including trading volumes, social media sentiment, and other real-time indicators. Recently, you discovered that your model can generate insights that significantly outperform the market when trading in a specific sector.

One day, while discussing your model with a colleague, you are informed that your firm is planning to release a marketing report that highlights your model's effectiveness but does not disclose how it works or the datasets utilized. The timing coincides with a period of heightened trading activity in the sector that your model has focused on.

Your colleague suggests that you should express your enthusiasm about the model publicly, potentially through media outlets, to boost the firm's credibility and attract new clients. However, you are concerned that such an action could mislead investors into believing that they can replicate the model's success without understanding its limitations and proprietary datasets.

What steps should you consider in making your decision about whether to support public remarks regarding the model? Discuss the ethical implications of your options, referencing the CFA Institute's Code of Ethics and Standards of Professional Conduct, particularly those related to the integrity of capital markets. Ensure that your response is well-structured and demonstrates a clear understanding of the ethical framework at play.