Regulation & Compliance

Materiality

Definition

What is Materiality?

The importance of information to a reasonable investor's decision or to financial statements.

Example in practice

A small error may be immaterial while a covenant breach is material.

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A legal or ethical duty to act loyally and carefully in another person's best interest.

The requirement or process of determining whether an investment fits a client's circumstances and objectives.

A duty to place the client's interests ahead of the provider's when making a recommendation.

Nigeria's principal securities exchange, where listed shares, bonds, ETFs, and other instruments trade.

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